Audiovox said John J. Shalam, chairman/CEO; Michael Stoehr, senior VP/chief financial officer; and Philip Christopher, director, have each entered into a written selling program in accordance with the guidelines specified by the Securities and Exchange Commission.
Pursuant to the selling programs, each individual intends to exercise certain Audiovox options, which were granted in 1995 and would otherwise expire on Aug. 9.
In total, there are 212,500 options that will be exercised, of which Shalam holds about 82 percent. He will not sell more than 20,000 shares per day.
Shalam said, “The exercising of these options and the potential sale thereafter is in no way reflective of our belief in the company’s near- and long-term prospects. We have entered [this] plan as a way of achieving prudent diversification of our assets as well as estate planning.
“With regard to the block of options that I will exercise, assuming all of them are exercised and sold, it will represent only a small percentage of my personal holdings.”
Shalam further said, “Our business has been improving, and many of the issues that have impacted our results over the past six months are drawing to a close.
“We look forward to a continuation of this improving trend during the second half of fiscal 2005 and believe our cash position and strong balance sheet provides us with the financial flexibility to grow both internally and via acquisition over the coming years.”