CUI Global, Inc. (NASDAQ:CUI) Q4 2018 Earnings Conference Call - Final Transcript

Mar 18, 2019 • 04:30 pm ET


CUI Global, Inc. (NASDAQ:CUI) Q4 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the CUI Global 2018 Fourth Quarter and Full Year Results Conference Call.

(Operator Instructions)

As a reminder, today's conference will be recorded for replay purposes.

It is now my pleasure to turn the conference over to your host, Sanjay Hurry, Investor Relations. Please go ahead.

Sanjay M. Hurry

Thank you, Hailey. Good afternoon, everyone and welcome to CUI Global's fourth quarter and full-year 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 and 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 quarter and for the full year and to provide you with management's perspective on fiscal 2019. Following management's remarks, the call will be opened to question and answers.

A telephonic replay of this call will be available until April 3. You may also access the archived webcast and accompanying PowerPoint at any time on the Investor Relations page.

As a reminder, this call will contain certain forward-looking statements made within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities and Exchange Act of 1934 as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements.

The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors including, among other things, its reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand and the performance or liability of its products.

These factors and others could cause operating results to vary significantly from those in prior periods and those projected in forward-looking statements. Additional information with respect to these and other factors which could materially affect the Company and its operations are included in certain forms the Company has filed with the Securities and Exchange Commission.

With that said, I'd like to hand the call over to William Clough, Chief Executive Officer. Good afternoon, Bill.

William J. Clough

Thank you, Sanjay. And thank you, everyone, for joining us on our call this afternoon. As you've seen from our earnings press release, there is a lot of accounting noise in our fourth quarter financial results. Dan will take you through review of our GAAP results, but I want to begin today by putting aside the noise to share with you what I see.

I see a company executing financially across each of its business segments. We turned in an outstanding performance in the fourth quarter. Revenues were up 28% year-over-year and beat consensus estimates. Our gross profit, excluding the non-cash charges that flow through cost of revenues, was up 45% with gross margin