By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Hauppauge, N.Y. — Voxx International turned a net profit and higher operating income, but sales were slightly off in its fiscal first quarter, ended May 31.
Net income was $2.1 million in the quarter compared with a prior year’s net loss of $4.7 million. Operating income for the quarter was $3.4 million, an 11.6 percent gain over the year-ago period performance of $3.1 million.
Net sales were $193 million, a decrease of $1 million, or 0.5 percent, compared with net sales of $194 million reported in the comparable year-ago period, Voxx reported.
Commenting on the performance, Pat Lavelle, president and CEO, stated, “Our first-quarter results were mostly as expected with sales coming in slightly ahead of projections, despite the small year-over-year decline. We saw a nice uptick in our gross margins which, as expected, helped offset some of the expense increases we had previously projected, and most telling, we improved our bottom-line performance.”
Automotive sales for the quarter were $104.9 million, an increase of 4.5 percent over $100.4 million reported in the comparable period last year.
Premium audio sales for the fiscal 2014 first quarter were $40.2 million, an increase of approximately 1.7 percent as compared with $39.5 million reported in the comparable period last year. Voxx had growth in its domestic operations, primarily driven by higher sales of new soundbar products and premium wireless speakers. This growth was partially offset by lower international sales, primarily in Europe.
Consumer accessories sales were $47.6 million for the quarter, a decrease of approximately 11.8 percent as compared with $54 million reported in the comparable period last year. This decline was chiefly related to lower international sales, primarily in Europe. These declines were partially offset by increased sales domestic operations, driven primarily by higher sales of wireless speakers and personal sound amplifier products, Voxx said.
As a percentage of sales for the fiscal first quarter, automotive represented 54.3 percent, premium audio represented 20.8 percent, and consumer accessories had a 24.7 percent share.
Lavelle added, “While we're projecting modest sales increases this year, we believe we will be in a better position to grow organically over the coming years, supported by acquisition and with a better margin structure. Our strategy remains to pay down our debt and aggressively manage our costs, while remaining opportunistic.”
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