Oregon-based electro-mechanical and power components manufacturer, CUI Global Inc. (NASDAQ: CUI), posted earnings on Monday that beat Wall Street revenue expectations.
Revenue expanded to US$22.0mln compared to US$17.8mln on a year-over-year basis, handily beating consensus estimates of US$20.04mln.
“Strong revenue and record backlog in the first quarter reflect continued execution on our strategy to leverage our industry-disrupting technologies to build demand with new customers and across new geographies,” said CUI Global CEO William Clough, in a statement.
For the quarter ended March 31, the company posted a loss of US$0.11 per share.
CUI Global’s power and electromechanical (P&EM) segment had an unaudited backlog of $26.1mln on March 31, 2018, up from US$20.2mln in the December quarter.
“Our P&EM segment continues to benefit from new and expanded distributor relationships supplemented this quarter by initial ICE technology sales. In our energy segment, with a new, larger facility in Houston we are winning higher dollar integration projects from leading energy providers in North America,” said Clough.
The company indicated it was hopeful about resuming a large energy product contract with a longtime customer in Italy.
“Looking ahead, we are well positioned to drive volume and sales growth and improve the profitability of our sales mix,” said Clough.
CUI Global announced on Monday that its Orbital-UK subsidiary secured contracts totaling US$4.58mln from U.K.’s gas transmission network.
CUI Inc. recently inked a tie-up with Master Electronics, a large California-based distributor, to sell and market CUI’s full suite of power and electro-mechanical parts, audio and USB connectors, rotary encoders, as well as speakers and microphones.
Partnering with Master Electronics allows the firm to introduce its products to new customers. CUI Inc. recently received an order for its ICE Block units and ICE Switches worth US$2.9mln. The order is for 400 ICE Blocks and additional ICE Switches, which are expected to be delivered to the unnamed customer in the fourth-quarter of 2018.
In April, B. Riley FBR analyst Liam Burke recommended CUI Global stock and issued a 12-month US$6 price target.
“The engineered, applications-specific nature of CUI’s products enables the company to reduce the pressure on gross margins that is often caused by product commoditization,” wrote Burke in the research note.
The analyst also highlighted “catalysts” that would boost profits.
“The company’s strategy is to drive revenue and margin growth by building on its base of core products and to expand its product offerings through innovation, new applications for existing technologies, and selective acquisitions. We see a clear catalyst ahead, as we believe that significant rollouts of the GasPT analyzer and ICE systems should have a positive effect on the balance sheet and share price,” wrote Burke.
CUI Global maximizes shareholder value through the acquisition and commercialization of new technologies. The company has built a diversified portfolio of technologies through its many subsidiaries.
Shares were flat in pre-market trading.