Audiovox Posts Higher Net Income
-- TWICE, 1/18/2010
HAUPPAUGE, N.Y. — Audiovox reported higher net income but lower net sales for its fiscal third quarter, ended Nov. 30.
Audiovox had net income of $12.6 million for the quarter, compared with net income of $6.5 million for the prior year's quarter. During the fiscal 2010 third quarter, the company recorded a tax benefit that favorably impacted net income by $9 million. Excluding the impact of this tax benefit, pretax income for the fiscal 2010 third quarter was $3.6 million.
Net sales for the fiscal third quarter were $155.7 million, compared with net sales of $195.6 million in the prior year period, a decrease of 20.4 percent.
Accessories sales increased 5.2 percent, from $43.7 million, to $45.9 million, and electronics sales decreased 27.8 percent, from $152 million, to $109.7 million. As a percentage of net sales, electronics represented 70.5 percent and 77.7 percent for the periods ended Nov. 30, 2009, and Nov. 30, 2008, respectively. Accessories represented 29.5 percent and 22.3 percent for the similar periods.
The increase in accessories sales can be attributed to sales generated from the acquisition of Schwaiger and higher sales of Acoustic Research product lines, the company said.
Lower sales of consumer electronics products were attributed to the company choosing not to participate in several Black Friday promotions due to lower margin structures as well as lower retail buying based on its anticipation of lower holiday sales.
Mobile electronics product sales were up, primarily as a result of higher sales of satellite-radio products.
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