CUI Global, Inc. (NASDAQ:CUI) Q2 2018 Earnings Conference Call - Final Transcript

Aug 06, 2018 • 08:30 am ET


CUI Global, Inc. (NASDAQ:CUI) Q2 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q2 2018 CUI Global, Inc. Financial Results Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions)

I will now like to turn the call over to Sanjay Hurry, Investor Relations Counsel. You may begin.

Sanjay Hurry

Thank you. Good morning, and welcome to CUI Global Second Quarter 2018 Results Conference Call. A copy of the company's earnings press release and accompanying PowerPoint presentation to this call are available for download on the Events & Presentations page of the Investor Relations section of the CUI Global website.

With us on the call today are William Clough, President and Chief Executive Officer; and Daniel Ford, Chief Financial Officer. The purpose of today's call is to review the company's financial results for the second quarter and to provide you with management's perspective on the second half of fiscal 2018. Following management's remarks, the call will be open to question and answers. A telephonic replay of this call will be made available until August 21. You may also access the archived webcast and accompanying PowerPoint at any time on the Investor Relations section of the CUI Global website.

(Forward-Looking Cautionary Statements)

With that, I'd like to hand over the call to William Clough, Chief Executive Officer. Good morning, Bill.Thank you, Sanjay. Good morning, everyone, and thank you for joining us on our fiscal second quarter 2018 results conference call. I'll begin this morning with a brief overview of our performance for the quarter, after which Dan will review our financial results in greater detail. Following Dan's remarks, I will conclude the call with some commentary on our business trajectory for the second half of this year.

To begin, our consolidated revenues for the second quarter reflect strong demand in our Power and Electromechanical segment that offset slow uptick in our Energy segment as compared to the prior period. As Dan will discuss in his prepared remarks, net loss for the quarter includes a further $1.3 million goodwill impairment charge against Orbital UK. It also includes approximately $400,000 of foreign exchange loss and $200,000 in marketing costs associated with our well-attended open house event in the UK and our participation in the World Gas Conference in Washington, D.C.

Our Power segment was again a standout performer in quarter, with momentum sustained by strong end markets and increased distribution. We continue to see strong demand and broad growth across our entire product portfolio. Segment revenues increased approximately 12% over the period -- prior period that was driven by higher distributor sales volume, new distributor partners such as Master Electronics last quarter and Arrow last year are driving greater order flow as these relationships mature and expand.

Power segment backlog at quarter end was $26.5 million, up slightly as compared to $26.1 million at March 31, and up 31% from $20.2 million at December 31. Strength in Power backlog is being largely