Audiovox Fiscal Q1 Sales, Income Drop
Staff -- TWICE, 4/2/2001
HAUPPAUGE, N.Y. -Due to the industrywide slowdown in cellular phone sales and the delayed introduction of its CDM 9100 model phone, Audiovox said its fiscal first-quarter sales and net income had dropped from the year-ago three months.
Audiovox said net sales for the fiscal first quarter were $330.7 million, down 2.8 percent from the $340.2 million recorded in the first quarter of 2000.
Net income for the fiscal quarter ended Feb. 29 was $2.6 million, down from the $5.3 million recorded in the year-ago quarter. The CDM 9100 phone is the replacement for the current flagship model, CDM 9000. Shipment is expected to begin in April, and the company expects the phone will contribute favorably to its second-half results.
Audiovox said market pressures should hamper results in the first half of the year. However, the company said the outlook for sales and profits in the second half remains strong, with several new products slated for delivery during that time.
"Audiovox was adversely affected by the current wireless industry slowdown as well as from increased pricing pressures and the delayed release of new digital products," said chairman/CEO John Shalam.
The company cites the traditional cyclical implications of the wireless communications industry for part of its current financial results, but it also said it believes the third and fourth quarters will be its strongest quarters.
Sales of digital handsets accounted for over 90 percent of total units in the first quarter, said Audiovox. The company earlier said it expects unit sales for the first quarter to be about 1.9 million.
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