Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
Here's the Remote by Neil A. Martin
Summary: Shares of Universal Electronics (NASDAQ:UEIC), a wireless technology developer that makes remote controls for just about everything and everyone in the home entertainment world, are up more than 50% in the past year. The latest lift came Thursday as sales ($236 million) and earnings ($1.06 a share) considerably topped Street estimates. While some investors question how much higher it can go, there seems to be no reason for it to pause. It holds 168 remote-related patents, more than 75% of its revenue comes from technology licensing to such electronic giants as Sony (NYSE:SNE) and Motorola (MOT), and it commands 75% of remote controls sold to U.S. cable companies such as Comcast (NASDAQ:CMCSA). Satellite-TV companies, including DirecTV (DTV), also buy their remotes from Universal, and its low end remotes are sold at mass outlets like Wal-Mart (NYSE:WMT). Forecasts for increased sales of flat-panel TVs and subscriptions to DVR services such as TiVO (NASDAQ:TIVO) leave Universal with lots of room to grow, as consumers still want control of their fun.