Audiovox Files Unaudited Fiscal Year Results

By Jeff Malester On Mar 24 2003 - 8:00am

Cellular phones, mobile security and entertainment systems provider Audiovox filed unaudited financial results for its fiscal year, ended Nov. 30, 2002. The company said it would not file its annual 10-K for 2002 on March 17, 2003, the Securities and Exchange Commission deadline to file its annual report under a 15-day extension.

Audiovox said the reason for the filing delay is related to the resolution of the company's response to an SEC comment letter on Audiovox's prior 10-K and 10-Q filings. There can be no assurance it will not be required to make changes to the current financial information or prior financial information as a result of the SEC inquiry, the company said.

At the same time, Audiovox wireless subsidiary, Audiovox Communications (ACC), reported fourth quarter net sales of $210.9 million, with 1.5 million total units sold, at an average selling price of $137. ACC's fourth quarter loss before taxes was $7.9 million. Several charges were taken during the period, including a valuation allowance of $11.3 million on deferred tax assets.

Fourth quarter net sales for the company's Audiovox Electronics (AEC) subsidiary reached $106.3 million, with income before taxes for the period at $3.2 million.

For the fiscal year, ended last Nov. 30, Audiovox's ACC subsidiary reported revenue of $727.5 million, on sales of 4.9 million units. The average selling price was $136 per unit, due to higher-priced new product introductions during the fourth quarter. Wireless sales were impacted by reduced consumer demand, price erosion and delivery delays by Audiovox suppliers, contributing to ACC's fiscal year loss before taxes of $23.4 million.

AEC in the fiscal year posted sales of $373.8 million, with positive impact from continued growth in its mobile video, security and consumer product categories. Income before taxes for AEC in the fiscal year hit $18.8 million.

For the fiscal year, overall Audiovox net sales reached $1.1 billion, on income before taxes of $3.7 million. Operating expenses for the year reached $102.5 million.

In a restatement for the nine months, ended last August 31, Audiovox recorded a reduction of $462,000 in revenue and an increase in net income of $36,000.