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Audiovox Posts Higher Net Sales, Income

N.Y. – Audiovox reported higher net sales
and net income for its fiscal second quarter, ended August 31.

Net income for the quarter
was $3.4 million, compared with net income of $600,000 in the prior year’s
second quarter. Net sales for the second quarter were $158.3 million, an
increase of 22.5 percent, compared with net sales of $129.3 million reported in
the comparable year-ago period.

For the fiscal first half net
sales were $323.7 million, an increase of 24.7 percent as compared with net
sales of $259.6 million for the prior year’s first half. First-half net income
was $5.9 million, compared with net income of $1.8 million in last year’s
fiscal first half.

Pat Lavelle, president/CEO,
said in a statement, “Through the first half of the year, our business is primarily
tracking to plan. Our automotive OEM business continues to grow. Our
international operations are performing well, despite weakness in some European
countries, and our Klipsch acquisition is meeting plan with a lot of potential
to grow in the years ahead. Additionally, car sales over the past few months
have rebounded and all signs are pointing to continued strength.”

However he added, “Like most
in our industry, we continue to be impacted by a slow retail environment and
there are some concerns as we enter the all-important holiday season, as many
retailers remain cautious in their buying. However, given our performance
year-to-date, the strength in our margins, and good management of our expenses
and resources, we remain on track to meet our income and EBITDA forecasts for
the year.”

For the three- and six-month
periods, ended Aug. 31, electronics sales were $126.7 million and $259.0
million, an increase of 33.1 percent and 36.5 percent, respectively, over the
comparable prior-year periods.

Accessories sales were $31.6
million and $64.7 million, a decrease of 7.2 percent and 7.5 percent,
respectively. For both periods, the electronics group was favorably impacted by
the addition of Klipsch, improvements in the automotive OEM channel, both domestically
and abroad, and increases in for international operations of Audiovox.

Offsetting these increases
were lower sales of consumer electronics products and select groups in the
audio category, as well as lower sales of accessory products attached to TV
sales in the U.S. As a percentage of net sales, electronics represented 80
percent of the net sales for the three and six months, ended Aug. 31, and accessories
represented the remaining 20 percent for these periods.

Operating income was $7.7
million for the second quarter of fiscal 2012, compared with operating income
of $2 million in the comparable year-ago period. For the fiscal first half,
operating income was $11.6 million, compared with an operating loss of $1.3
million in the prior year.