Universal Electronics (UEIC) risk factors, FY2024 10-K

Universal Electronics's FY2024 10-K, filed Mar 11, 2025, lists 29 risk factors in 7 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
297 groups
Section length
13k wordsItem 1A

Universal Electronics's biggest risks in the FY2024 10-K

  • International manufacturing footprint in China, Mexico, Brazil, and Vietnam exposes operations to foreign labor, trade policies, and currency volatility.
  • Heavy reliance on major video service provider customers and third-party component suppliers creates revenue and supply chain concentration risks.
  • Intellectual property protection and rapid technological changes in remote controls and smart home devices dictate competitive positioning.

The risks most specific to Universal Electronics

  • Risks Relating to Operations

    Technology Changes in Control and Sensing

    We derive substantial revenue from remote controls, thermostats, and sensors using IR and RF technologies that face continuous competition from emerging control innovations.

  • Risks Relating to Operations

    Dependence on Major Customers

    Our business performance is highly dependent on the economic strength and purchasing decisions of our major video service providers, OEMs, and retail customers.

  • Risks Relating to Operations

    U.S.-China Trade and Supply Chain Compliance Risks

    U.S.-China trade regulations, tariffs, and forced labor supply chain prohibitions impose significant compliance hurdles and potential operational restrictions.

  • Risks Relating to Operations

    Dependence upon Key Suppliers

    We operate in a supply-constrained environment and depend heavily on third-party suppliers to deliver sufficient quantities of key components on time.

  • Risks Relating to Operations

    Disruptions Caused by Labor Disputes or Organized Labor Activities Could Materially Harm our Business and Reputation

    Approximately 500 employees in Brazil and Mexico and 600 in Vietnam are represented by labor unions or covered by collective bargaining agreements.

  • Risks Related to Doing Business in the PRC

    The Fluctuation of the Chinese Yuan Renminbi May Adversely Impact Our Manufacturing Costs

    Fluctuations in the exchange rate of the Chinese Yuan Renminbi against the U.S. Dollar may adversely impact our manufacturing costs.

  • Risks Related to Doing Business in the PRC

    Availability of Adequate Workforce Levels

    Rising wage levels, social insurance requirements, and strict labor laws for third-party agency workers at our PRC factory may increase our labor costs.

  • Risks Relating to Regulation and Legal Matters

    Significant Developments From Potential Changes in U.S. Trade Policies Could Have a Material Adverse Effect On Us

    U.S. tariffs on goods imported from the PRC and Mexico could materially increase our costs if implemented or expanded.

All 29 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Forward-Looking Statements

Risks Relating to Operations

  1. 02Technology Changes in Control and Sensing
  2. 03Our Technology Development Activities May Experience Delays
  3. 04Dependence upon New Product Introduction
  4. 05Dependence on Consumer Preference
  5. 06Dependence on Major Customers
  6. 07Demand for Consumer Service and Support
  7. 08U.S.-China Trade and Supply Chain Compliance Risks
  8. 09Dependence upon Key Suppliers
  9. 10Transportation Costs and Impact of Oil Prices
  10. 11Disruptions Caused by Labor Disputes or Organized Labor Activities Could Materially Harm our Business and Reputation
  11. 12Change in Competition and Pricing
  12. 13Strategic Business Transactions
  13. 14Recruitment and Retention of Talent and Key Employees

Risks Related to Doing Business in the PRC

  1. 15The Fluctuation of the Chinese Yuan Renminbi May Adversely Impact Our Manufacturing Costs
  2. 16Availability of Adequate Workforce Levels
  3. 17The PRC Laws and Regulations Governing Our Current Business Operations are Sometimes Vague and Uncertain
  4. 18The PRC's Legal and Judicial System May Not Adequately Protect Our Business and Operations and the Rights of Foreign Investors

Risks Relating to Regulation and Legal Matters

  1. 19Certain Regulatory and Financial Risks Related to Climate Change
  2. 20Significant Developments From Potential Changes in U.S. Trade Policies Could Have a Material Adverse Effect On Us
  3. 21Policy Changes Affecting International Trade Could Adversely Impact the Demand for Our Products and Our Competitive Position
  4. 22We are Subject to a Wide Variety of Complex Domestic and Foreign Laws and Regulations
  5. 23Patents, Trademarks, and Copyrights

Risks Relating to Finance

  1. 24Actual events or results may be unfavorable to management's projections, which may have a material adverse effect on our projected operating results, financial condition and cash flows
  2. 25Market Projections and Data are Forward-looking in Nature
  3. 26Potential Fluctuations in Quarterly Results
  4. 27Our Ability to Generate Cash Depends on Many Factors Beyond Our Control

Risks Relating to Our Stock

  1. 28The Price of Our Common Stock is Volatile and May Decline Regardless of Our Operating Performance
  2. 29Approved Stock Repurchase Programs May Not Result in a Positive Return of Capital to Stockholders

Other Universal Electronics 10-Ks

  • FY2025 10-K risk factors
    33 risks4 new3 reworded

    Universal Electronics faces ongoing operating losses, restructuring its Mexico manufacturing facility, and exposure to tariffs from multiple countries.

    Filed Mar 12, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.