News

CUI Announces Financial Results and Stock Buyback Program

November 10, 2014 by Jeff Shepard

CUI Global, Inc. reported their unaudited financial results for the third quarter, ended September 30, 2014. Quarterly revenue increased 24% to $21.4 million from $17.2 million and year to date revenue increased 27% to $57.5 million from $45.4 million. Quarterly gross profit margin was 37%, as compared to 38% while year to date gross profit margin was 40% as compared to 38%. Quarterly consolidated loss of $(349) thousand or $(0.02) per share versus $737 thousand profit or $0.04 per share and year to date consolidated loss of $(903) thousand or $(0.04) per share versus $712 thousand profit or $0.04 per share.

CUI Global's President & CEO, William Clough commented, "The third quarter of 2014 was a good quarter for CUI Global and most especially for CUI Inc., the power and electro-mechanical segment, as we continue to build on the momentum created during the first half of the year."

"We were particularly pleased with our performance from a revenue perspective, as we saw nice increases both sequentially as well as compared to the prior year quarter. The gas segment, revenue growth was driven primarily by an influx of Biomethane projects in the UK, as the British government continues to incentivize the production of renewable energy. Growth in the power and electro-mechanical segment was related to continued market penetration of its expanding product portfolio as well as growth within its distribution channels. On a year-to-date basis, we saw increases in revenues in both segments compared to 2013."

"It was an eventful quarter for our Company beginning with the mid-September announcement of a distribution agreement between our wholly own subsidiary Orbital Gas Systems and Branom Instrument Company, which we feel will have a significant impact on the North American Natural Gas Industry going forward," Clough continued.

"Additionally, last month CUI was named as one of three founding members of the Architects of Modern Power, a new power industry consortium. The formation of this consortium, which includes two other globally recognized industry leaders, is a significant step forward in terms of developing advanced power conversion technology for distributed power architects," added Clough.

The Company also announced today that its Board of Directors has authorized a one-year program to repurchase up to an aggregate $3 million of the Company's common stock. The authorization is effective immediately. The amount and timing of any such repurchases will be determined by the Company based on its financial condition, business opportunities, and the market conditions at the time.

As explained by CUI Global's Board of Directors, "This buyback reflects our view that the current trading level of the Company's common shares does not always reflect the significant, near-term business opportunity set in front of the Company. The Board is committed to maximizing shareholder value and therefore has authorized this program to opportunistically repurchase the Company's shares in the public market as and when appropriate."

For the quarter ended September 30, 2014, CUI Global produced consolidated total revenues of $21.4 million and year to date consolidated total revenues of $57.5 million. Total revenues for the third quarter grew 11% sequentially from second quarter revenues of $19.2 million and 24% year-over-year, when compared to $17.2 million in the third quarter of 2013.