Hauppauge, N.Y. — Pat Lavelle, president and CEO of Audiovox, told analysts he believes the economy could improve in the second half, based on the expected stimulus package from the Obama administration.
Citing its lowest mobile electronics sales in over 26 years, the company said it may “see an uptick in the second half,” according to Lavelle.
Reporting on Audiovox’s fiscal third quarter sales, for the period ended Nov. 30, Lavelle said mobile electronics sales have been hit by both lower car sales and the general economy, but Audiovox’s overall sales and net income for the quarter are up compared to the year-ago quarter
The executive also said Audiovox’s new role as the key distributor of Sirius satellite radio products could result in sales of $100 million for Audiovox in fiscal 2010 compared to the $50 million expected for fiscal 2009 in mainly XM sales, as the company now distributes both satellite radio brands.
Lavelle said Audiovox has eliminated $20 million in expenses, on an annualized basis in response to the recession and remains interested in purchasing other companies The company said it has about $20 million in cash on hand for these ventures.
“Obviously, with the economy the way it is” there may be “more good opportunities out there” for acquisition, Lavelle said.
Audiovox reported net sales for the quarter were $195.6 million compared to $183.6 million for the period a year ago. Net income was $6.5 million compared to $4.7 million for the year ago period.