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SCOTTSDALE, Ariz. – In a significant legal victory for Universal Electronics Inc. (NASDAQ:), the U.S. Court of Appeals for the Federal Circuit has upheld a previous ruling by the U.S. International Trade Commission (ITC), which prevents Roku (NASDAQ:), Inc. from importing and selling certain streaming products that violate UEI’s patent. The decision, announced today, supports UEI’s claims regarding the infringement of its patent, which remains valid until 2032.
The appellate court’s affirmation follows the ITC’s findings that Roku’s products infringed on six claims of UEI’s U.S. Patent No. 10,593,196 and acknowledged the legitimacy of the patent granted by the U.S. Patent and Trademark Office. Additionally, the court recognized UEI’s substantial domestic industry related to the patented technology.
Richard A. Firehammer, Jr., UEI’s SVP & General Counsel, expressed satisfaction with the court’s decision, stating it clears the path for UEI to seek monetary damages from Roku and its television partners for past infringement activities. This legal resolution allows UEI to proceed with its U.S. District Court cases, which were paused pending the appellate decision.
UEI, a company known for its universal control solutions for home entertainment and smart home devices, holds an extensive portfolio of over 600 U.S. patents, issued or pending. Its QuickSet cloud, software, and solutions technology, widely licensed by leading consumer electronics brands and entertainment service operators, facilitates automated device discovery, setup, and control.
The information for this article is based on a press release statement from Universal Electronics Inc.
InvestingPro Insights
Following the legal triumph of Universal Electronics Inc. (UEIC) in its patent infringement case against Roku, Inc., the financial landscape of UEIC presents a mixed picture. According to InvestingPro data, the company has a market cap of approximately $108.67 million and is trading at a low price-to-book ratio of 0.6 as of the last twelve months ending Q3 2023. This could indicate that the company’s stock is undervalued relative to its assets. Despite a challenging year with revenue declining by over 21% in the same period and a significant drop in EBITDA, UEIC maintains a strong gross profit margin of 25.23%.
InvestingPro Tips reveal that analysts have revised their earnings estimates downwards for UEIC, anticipating a sales decline and expressing concerns over profitability for the current year. The stock has experienced a notable downturn over the past week, with a 9.9% decrease in price total return, and has seen a significant 62.94% drop over the past year. However, the company’s liquid assets exceed its short-term obligations, and it operates with a moderate level of debt, suggesting a degree of financial stability despite the revenue and net income challenges.
For investors seeking a deeper analysis, InvestingPro offers additional insights, including the fact that UEIC does not pay dividends and is trading at a high EBITDA valuation multiple. Subscribers to InvestingPro can access a full suite of tips to better understand UEIC’s financial health and future prospects. With the New Year sale, InvestingPro subscriptions are now available at a discount of up to 50%. Use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. There are 14 additional InvestingPro Tips available for UEIC, which could further inform investment decisions.
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