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Audiovox Posts Higher Sales, Lower Net Income

1/11/2011 10:01:45 AM Eastern
Hauppauge, N.Y. - Audiovox reported higher sales but lower net income for its fiscal third quarter, ended Nov. 30, 2010.

Net sales for the quarter were $163.2 million, an increase of 4.8 percent when compared with net sales of $155.7 million reported in the comparable year-ago period.

Net income for the quarter was $3.9 million as compared with net income of $12.6 million in the prior year's fiscal third quarter. The fiscal 2010 third quarter included an income tax benefit of $9 million as compared with an income tax expense of $2 million recorded in the fiscal 2011 third quarter.

Operating income for the quarter was $5.4 million as compared with operating income of $3.1 million in the comparable year-ago period.

In a prepared statement, Pat Lavelle, president/CEO, said, "During the third quarter, our automotive business, both in the aftermarket and at the OE level, continued to offset the weakness in our consumer and accessory categories. Concerns over the state of the U.S. economy remain and while our sales in these groups are lower than last year, we gained several new retail accounts, which is encouraging for the future. Additionally, our international business continues to grow. What was most pleasing was our 3Q margin improvement, as it was across the board in all of our segments."

By category electronics sales were $122.7 million for the 2011 fiscal third quarter as compared with $109.7 million in the prior year, an increase of 11.8 percent. Electronics sales were positively impacted by higher sales of mobile electronics products, particularly in automotive security and from new OEM programs, as well as from the company's Invision acquisition. These increases were partially offset by declines in select retail categories.

Electronic sales represented 75.2 percent of net sales for the quarter, compared with 70.5 percent in the comparable prior year period.

Accessory sales were $40.5 million for the quarter as compared with $45.9 million for the prior year's quarter, a decrease of 11.9 percent. At the retail level, the accessories group continues to be impacted by slower sales for electronics products utilizing our accessories, partially offset by modest increases in select remote control lines and in the company's international operations, Audiovox said.

Accessory sales represented 24.8 percent of net sales for the quarter as compared with 29.5 percent in the comparable prior-year period.
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