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Audiovox Q3 Sales Dip 1.7%

10/18/2004 08:58:00 AM Eastern

Hauppauge, N.Y. — With the sale of its wireless business pending in about a month, audio/video/mobile products supplier Audiovox released only the most basic information for its fiscal third quarter financial results.

Sales from continuing operations slipped 1.7 percent in the three months, ended Aug. 31, down to $133 million from $135.2 million.

Income from continuing operations for the third quarter reached $37,000, compared with $2.3 million year-over-year, while income from discontinued operations, net of tax, hit $5.3 million for the three months, compared with a loss, net of tax, of $1.6 million in the third quarter of 2003.

Net income for the third quarter climbed to $5.3 million, compared with $647,000 in the same three months a year earlier.

Audiovox’s majority owned subsidiary Audiovox Communications, last June, entered into a definitive purchase agreement to sell certain assets and liabilities to UTStarcom for a purchase price of $165.1 million, subject to certain agreements. The deal is expected to close in early November.

For the nine months, Audiovox sales from continuing operations increased 27.5 percent, hitting $417.5 million, up from $327.4 million the previous year.

Income from continuing operations for the nine months was about flat at $2.3 million in both the current year and 2003 periods. Income from discontinued operations for the nine months hit $8.6 million, compared with $1.6 million in the same period a year ago. Net income for the nine months rose to $10.9 million, up from a year-earlier $3.9 million.