Audiovox Fiscal Q1 Subsidiary Sales Climb
By Jeff Malester -- TWICE, 6/23/2003
Hauppauge, N.Y.— Audiovox reported higher fiscal first quarter sales in both its operating subsidiaries and an overall company return to profitability during the three months.
Audiovox Communications, the wireless subsidiary, posted net sales of $216.6 million, compared with $113 million in the year-ago period. The group sold 1.2 million units at an average selling price of $171 during the three months.
First quarter net sales for Audiovox Electronics, the consumer and mobile electronics subsidiary, were $80.3 million, up from $71.3 million in the first three months of 2002.
Consolidated net sales for the fiscal first quarter, ended Feb. 28, hit $296.8 million, compared with a restated $184.3 million year-on-year. Net income for the first quarter moved into the black, reaching $1.2 million, compared with a net loss of $5.3 million in the same period a year earlier.
Consolidated operating income also became black in the first quarter, coming in at $4.5 million, compared with an operating loss of $5.2 million in the first quarter last year.
"In wireless, the market began to show some improvement, as products with new consumer friendly features began delivery," said chairman John Shalam. "In our electronics group, new products in the mobile video category fueled growth."
He continued, "The economy is showing modest signs of improvement, and provided that continues, we believe we have the right products, pricing and brands to achieve our sales and profit goals."
Audiovox has requested waivers from its bank group on covenant violations related to income tests for all of fiscal 2002 and timely financial statements for the year ended Nov. 30, 2002 and the quarter ended Feb. 28, 2003 (TWICE, June 9, p. 54).
