Universal CEO Eyes Next-Gen Remotes, But Shares Slump
Universal Electronics will supply next-generation remote controls to some 140 million pay-TV subscribers into next year, said CEO Paul Arling on the company’s Q1 earnings call Thursday. Such remotes lead to higher MVPD engagement with users plus financial and other…
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benefits, he said. Revenue in Q1 rose 7.1 percent to $161.4 million from the year-ago quarter, with Comcast revenue up by about that percentage, the company said. Universal warned of lower Q2 guidance as a large customer “burns through inventory of the company's old product” before transitioning to the next Universal remote platform. Dougherty & Co. analyst Steven Frankel cited “a material up-tick in customer churn” in the subscription-video industry, a loss of 762,000 subscriptions marking its “worst quarter ever,” and said the threat of cord-cutting is driving the next-generation user experiences being rolled out by virtually every participant in the industry. The next-gen gear switch has had "fits and starts,” he said. The stock closed 5.9 percent down Friday at $64.15.