FLO TV's End
By Joseph Palenchar On Oct 18 2010 - 3:01am
HAUPPAUGE, N.Y. —
Audiovox expects no
financial impact from FLO TV’s decision to
turn off direct-to-consumer mobile-TV service
early next year.
That’s what president/CEO Pat Lavelle said
last week during a conference call with financial
analysts after its fiscal second quarter.
The company “expects no exposure” to
its financial statements and will work with
FLO TV “to transition … with no loss to Audiovox,” he said.
Referring to FLO TV, Lavelle said
Audiovox was disappointed in FLO
TV’s decision to turn off service and
was a “firm believer” in the service’s
“long-term success.” The decision
“will not have a significant impact
on sales” because Audiovox knew it
would take time to build the market
and did “not anticipate overly high
sales in the first year,” he noted.
Audiovox expects lost FLO TV
sales to be replaced by sales of ATSC
M/H products that deliver the signals
of local over-the-air HDTV stations to
portable and mobile devices in motion,
Audiovox marketed a FLO TVequipped
portable DVD player and
FLO TV tuners that could be added
onto existing car-A/V systems.
Lavelle also discussed International
CES introductions, saying Audiovox
“fully expects” launch of the RCAbrand
Air Power battery charger,
which wirelessly “harvests” 2.4GHz
Wi-Fi energy to charge a connected
He noted Audiovox plans a CES
launch of 14 OEM-look in-dash head
units for the expediter channel with
multimedia, navigation, satellite-radio
and HD Radio capabilities.
And during the quarter its Zentral
Home Command devices, which
turn BlackBerrys, iPhones and iPod
Touches into Bluetooth remotes to
control home-entertainment systems,
should begin shipping. They were
shown at January’s CES along with a
product that turns a BlackBerry into a
Bluetooth garage-door remote.
As for the Air Power product, shown
at the 2010 CES conventions, Lavelle
said a patent application is proceeding
and “testing is going well.”
Audiovox reported slightly higher
sales but lower net income in its fiscal
second quarter, ended Aug. 31.
Net sales for the second quarter
were $129.3 million, an increase of
3.5 percent compared with net sales
of $124.9 million reported in the comparable
Net income for the quarter was
$600,000, compared with net income
of $2.8 million a year ago. Net
income for the prior year included an
income tax benefit of $1.6 million.
Electronics sales were $95.2 million
for the 2011 fiscal second quarter,
compared with $79 million for
the three months ending Aug. 31,
2009, an increase of 20.5 percent.
Electronics sales were positively impacted
by the acquisition of Invision
Automotive Systems, new OEM programs,
and higher aftermarket sales
of audio, video and security products
for the mobile market.
Electronics represented 73.6 percent
of net sales for the quarter, compared
with 63.3 percent a year ago.
Accessory sales were $34.1 million
for the quarter, compared with
$45.9 million in the prior year, a decrease
of 25.6 percent.
Excluding the impact of antennas,
accessory sales were down 5.3
percent, which can be attributed to
weakness in consumer spending
similar to core electronics products.
Accessories represented 26.4
percent of sales for the quarter, compared
with the prior year’s 36.7 percent
share. — Additional reporting
by Steve Smith