Audiovox Shares Expectations For Q4 Revenue, Sales

Staff On Dec 18 2000 - 8:00am

HAUPPAUGE, N.Y . -Audiovox Corp., maker of consumer electronics products, wireless handsets, autosound, vehicle security and mobile video systems, said its revenue for the fourth fiscal quarter ended Nov. 30 should be between $485 million and $520 million. Cellular phone unit sales should range between 2.4 million and 2.7 million for the same three months.

Due to the rapid shift from analog to digital technology in the cellular phone business, Audiovox said it will withdraw from analog sales and take a reduction in the carrying value of its remaining analog inventories.

The company expects earnings per share prior to the analog inventory cost reduction to be in the range of 44 cents to 47 cents per share for the fourth quarter, compared with 56 cents per share in the year-ago fourth quarter.

Based on current market conditions, Audiovox estimates the inventory cost reduction will be between $8.5 million and $9 million, or about 26 cents per share after tax.

For the fiscal year, Audiovox expects earnings per share to be in the range of $1.43 to $1.46, excluding the charges associated with the analog inventory cost reduction, compared with $1.39 per share the past fiscal year.

Earnings per share figures for fiscal 1999 included a gain that resulted in a gain of 12 cents per share after tax.

Revenue for the fiscal year is tracking at about $1.7 billion, a 42 percent jump over the $1.2 billion recorded in the comparable year-ago period.

Unit sales for the fiscal year are expected to be between 8.7 million and 8.9 million, up 43 percent, compared with 6.1 million reported in fiscal 1999.

Audiovox expects digital units to be about 90 percent of total units sold for the fiscal fourth quarter and 79 percent for fiscal-year 2000, compared with 61 percent and 45 percent for the corresponding 1999 periods.

Audiovox estimates sales of between 10 million and 10.5 million wireless handsets in fiscal 2001, an increase of 45 percent in digital unit sales over fiscal 2000. The company also said it plans to sell the remaining analog units in its fiscal fourth quarter and throughout 2001.

"Moving forward, our focus will be on expanding our digital product offerings in North America and abroad," said president/CEO John Shalam, "achieving higher gross profit on digital units while continuing our dominance of CDMA in the North American market. We expect fiscal-2001 sales to be in the range of $1.8 billion to $1.9 billion."

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