San Antonio — The Progressive Retailers Organization was at the Westin La Cantera Hill Coun
Paris — Third-quarter revenue for Thomson's industry and consumer solutions segment, which includes consumer electronics, declined to $763 million from $1.4 billion. At constant currency, third-quarter CE segment sales were $998.5 million. Excluding acquisitions and other factors, adjusted CE segment sales hit $1.1 billion in the third quarter of 2003, but dropped 7 percent year-on-year, reaching $993.5 million, adjusted for constant currency. Revenue in the consumer businesses — including accessories — decreased by 2 percent in the third quarter, excluding currency movements and adjusted for discontinued and transferred activities. Overall, revenue from these businesses accounted for 44 percent of the company's CE segment sales. Thomson said it continues to report income numbers, along with revenue, only in its six-month and year-end financial releases.
Hauppauge, N.Y. — Audiovox has completed the sale of its cellular subsidiary business, called Audiovox Communications, to UTStarcom. The sale had been announced last June for a purchase price of $165.1 million. This majority-owned subsidiary has sold selected assets and liabilities, excluding its receivables, inter-company accounts payable and certain accrued expenses. Audiovox said net proceeds from the sale would be about $145 million after repurchasing Toshiba's equity interest, paying executive and professional service fees and estimated taxes, collecting the outstanding receivables, and paying down the company's bank lines. “In the months ahead, our plans are to focus on the continued development and growth of our electronics company, as well as exploring other business opportunities,” said John Shalam, Audiovox's chairman/CEO.
New York — Satellite radio provider Sirius has announced a public offering of 25 million shares of common stock, and $200 million in principal amount of convertible notes, due 2011. Sirius intends to use the net proceeds from the sale of stock and notes, which totals about $290 million, for general corporate purposes — including investments in programming, infrastructure and retail and automotive distribution agreements.
Washington — XM Satellite Radio is offering $300 million in senior convertible notes, due in 2009. The notes will be convertible into shares of Class A common stock. Use of the proceeds will be for general corporate purposes. XM also granted the initial purchaser an option to purchase up to an additional $100 million in senior convertible notes. All of the securities are being offered by the company.
Irvine, Calif. — PC maker Gateway has reached an agreement with America Online to repurchase, for $315.6 million, certain Gateway preferred stock and up to 2.7 million shares of common stock currently held by AOL. Gateway plans to pay $185.6 million in cash and in a reduction, by up to $130 million, of cash payments for certain past and future revenue-share payments that AOL would otherwise be required to make to Gateway under an agreement between the parties. Gateway expects to pay any balance of $130 million deferred liability in cash on or before June 30, 2005, although final payment can be extended under certain circumstances.