Digital Weakness Zaps Remote Firm7/28/2002 8:00 PM Eastern
Morgan Keegan Inc. analyst Murray Arenson downgraded Universal Electronics Inc. from "outperform" to "market perform," even though UEIC beat his earnings estimates by a penny per share. UEIC, which makes remote-control devices and other equipment for digital cable set-tops, reported mixed second-quarter results. Despite beating earnings estimates, revenue fell 6 percent. UEIC also lowered its forecast for sales and earnings for the rest of the year, citing weak demand for digital cable. "We believe the outlook for digital cable growth and penetration remains strong over the long-term, but the short-term outlook has become more uncertain," Arenson wrote.