Audiovox Posts Fiscal Year, Q1 Sales Gains

HAUPPAUGE, N.Y. — Audiovox reported double-digit sales gains for its fiscal fourth quarter, ended Feb. 29.

While the company posted a fiscal year increase in net income, Audiovox reported a slightly higher quarterly loss.

In its fiscal fourth quarter, net sales were $131.3 million, an increase of 36.6 percent, compared with $96.1 million reported in the comparable prior year quarter.

The operating loss for the quarter was $3.5 million, compared with an operating loss of $2.6 million reported in the comparable prior year period.

The net loss for continuing operations, after completion of a foreign tax audit, was $1.8 million, compared with a net loss of $300,000 in the fiscal 2007 fourth quarter.

Audiovox said that on a pro forma basis, excluding non-recurring charges it would have had a "break even" Q4.

Electronics sales, which include both mobile and consumer electronics were $95.8 million in the fiscal fourth quarter, saw an increase of 15.3 percent, compared with the prior year's Q4 of $83.1 million.

Accessories sales in the quarter were $35.5 million, an increase of 173.1 percent when compared with sales of $13.0 million in the fiscal 2007 fourth quarter. This increase was primarily due to sales by acquired operations.

Pat Lavelle, president/CEO, said in a prepared statement, "During the fourth quarter we assimilated additional overhead for [Thomson and Technuity] during what is traditionally our weakest period," plus dealt with the general weak economic conditions.

"The acquisitions we made last year provide us with the strongest portfolio of brands we've ever had, give us added leverage at the retail level domestically," Lavelle noted.

For the fiscal year Audiovox reported net sales of $591.4 million, an increase of 29.5 percent compared with $456.7 million reported in the comparable prior year period.

Operating income for fiscal 2008 was $4.4 million compared with an operating loss of $5.1 million in fiscal 2007. Pretax income from continuing operations for fiscal 2008 was $10.6 million, an increase of $8.4 million, or 381.8 percent, compared with $2.2 million in the comparable prior year.

Net income from continuing operations in fiscal 2008 was approximately $6.7 million compared with $3.7 million in fiscal 2007.

Audiovox said it has shipped OEM two-way remote starters to General Motors, and is supplying OEM car entertainment products for MOPAR.

When asked during a conference call with analysts how the proposed merger between Sirius and XM would impact sales, the company said it does not expect much impact through 2009, Lavelle said.

Audiovox is the distributor for XM. Directed, the distributor for Sirius recently extended its contract with Sirius through January 2009.