CUI Global (CUI) Misses Q3 EPS by 7c, Revenues Miss

CUI Global (NASDAQ: CUI) reported Q3 EPS of ($0.11), $0.07 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $6.1 million versus the consensus estimate of $16.95 million.

• Total revenues were $6.1 million compared to $5.2 million;
• Gross profit was $1.4 million compared to $1.3 million;
• Gross margin was 23.4% compared to 25.6%;
• Operating loss was $3.7 million compared to an operating loss of $3.3 million.

"Our third quarter results reflect continued strength in our engineering and integration services in North America that offset lower revenue from our U.K. operations due to the continued headwinds associated with Brexit," said William Clough, executive chairman of CUI Global. "We also took steps to unlock the value of our Power and Electromechanical segment in support of CUI Global's strategy to become a diversified energy infrastructure services company. We completed the sale of our Electromechanical components business during the quarter and yesterday announced the sale of the majority of our remaining Power business to Bel Fuse for $32 million. With these transactions, we move forward with a recast balance sheet and the financial resources to support the company's Energy-centric growth strategy with Jim O'Neil as CEO."

Jim O'Neil, vice chairman and CEO of CUI Global, stated, "Secular trends in the oil and natural gas, electric power and telecommunications industries have created a sustained market opportunity that is ripe for a market entrant with a differentiated value proposition and disciplined acquisition strategy. With the divestiture of the majority Power and Electromechanical segment, we turn our full attention to executing on our strategy to diversify our Energy business into the infrastructure services market and build a recurring revenue and earnings stream through acquisitions and organic growth. With CUI Global as the foundation of a diversified platform for growth, we believe we have the right strategy and the financial means to establish the company as an industry leader and support a sustainable growth trajectory."

For earnings history and earnings-related data on CUI Global (CUI) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Diana Shipping drops bid for Genco after price demands spike to $36.91
• Algorhythm Holdings (RIME) Tops Q2 EPS by 54c