CUI Global, Inc. (NASDAQ:CUI) Q3 2018 Earnings Conference Call - Final Transcript
Nov 07, 2018 • 08:30 am ET
Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 CUI Global Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-session and instructions will follow at that time.
(Operator Instructions) As a reminder, today's conference is being recorded.
I would now like to introduce your host for today's call Mr. Sanjay Hurry, External IR Counsel. Mr. Hurry, you may begin.
Thank you, Operator. Good morning, and welcome to CUI Global's third 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 in 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 CEO; and Daniel Ford, CFO. The purpose of today's call is to review the company's financial results for the third quarter and to provide you with management's perspective on the balance of fiscal 2018 and an early view into 2019. Following management's remarks, the call will be opened to question-and-answers.
A telephonic replay of this call will be made available until November 22nd. 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 said, I'd like to hand the call over to William Clough, CEO. Good morning, Bill.
Thank you, Sanjay. Good morning everyone and thank you for joining us on our fiscal third quarter 2018 results conference call. I am very pleased to report an excellent start to the second half of the year with higher consolidated revenues and smaller net losses, both sequentially and in a year-over-year basis. Our performance was driven by a very strong rebound in the Energy segment's revenues, as anticipated, when we spoke on our second quarter call.
I'll begin this morning with a brief overview of segment performances for the quarter, after which Dan will review our financial results. Following Dan's remarks, I will conclude the call with an update on our -- on both our business segments with a focus on the progression of initiatives to drive broader adoption of our Energy products and how that positions us going forward into 2019.
To begin, our Power and Electromechanical segment continues to perform well. On a year-over-year basis, segment revenue was up about 17%, due primarily to higher distributor sales volume resulting from aggressive product expansion across all categories in prior quarters. Within this segment, we saw a strong performance by our Power group to do a general investment in inventory industry-wide in advance of recently implemented tariffs.
Solid performance in the Power group is also reflected in backlog at quarter-end of $25.6 million, which is up about 27% year-to-date. In our Energy segment, revenue was flat year-over-year and up about 84% sequentially as backlog converted to revenue with customers delivery schedules timed to take advantage of the RHI biomethane project initiatives