Audiovox Sales, Profit Up In Q3

By Staff -- TWICE, 1/19/2009

HAUPPAUGE, N.Y. — Audiovox reported higher sales, net income and operating income for the third quarter, ended Nov. 30.

Net sales for the quarter were $195.6 million compared with net sales of $183.6 million reported in the prior-year period.

Operating income from continuing operations before income taxes was $10.7 million in the fiscal 2009 third quarter, compared with $6.7 million in the fiscal third quarter last year.

Net income for the quarter was $6.5 million, compared with net income of $4.7 million in the comparable fiscal 2008 period.

Pat Lavelle, president/CEO, stated, "We are generally pleased with our third quarter performance, especially in light of the continued economic turbulence worldwide. Despite waning consumer confidence and spending and the difficulties of the automakers, we experienced our highest sales quarter for electronics and accessories products in our company's history. Our margins have increased to target levels and we continue to manage our expense structure to match anticipated sales."

He added, "I am cautious of our near-term outlook given recent reports of a lackluster holiday season. Economic difficulties will persist over the coming year, but I believe we are well positioned to weather this storm and should be in a position to show strong growth and profits with new partnerships in the second half of our next fiscal year."

Electronics sales, which include both mobile and consumer electronics, were $152.0 million for the quarter, an increase of 9.4 percent, compared with $139 million reported in the comparable fiscal 2008 period. This increase is primarily related to new product categories from the RCA Audio/Video acquisition and increases in electronic sales of the company's operations in Mexico and Venezuela.

Accessories sales for the fiscal 2009 third quarter were $43.7 million, a decrease of 2.1 percent, compared with $44.6 million reported in the year earlier period, and are a result of the overall decline of the U.S. economy. This decrease was partially offset by sales generated from the Technuity acquisition in November 2007.

Gross margins were 19.9 percent, compared with 19.1 percent.