Hauppauge, N.Y. – Audiovox
reported higher net sales and a slightly higher net profit for its fiscal first
quarter, ended May 31.
Net sales for the
first quarter were $130.3 million, an increase of 8.8 percent, compared with
net sales of $119.8 million reported in the comparable year-ago period.
Net income was $1.1
million for the quarter, compared with net income of $500,000 for the first
quarter of last year. Net income for this year’s fiscal first quarter was
inclusive of a gain from foreign exchange contracts and a favorable tax
settlement.
Commenting on the company’s
performance, Pat Lavelle, president/CEO, stated, “While we showed improvement
over last year’s first quarter, like most companies, we are still feeling the
effects of an economic recovery that is materializing slower than expected.
However, we are well positioned for growth and profits this year and I believe
as the global economies begin to improve, we have a tremendous opportunity to
capture meaningful market share given the strength of our brands, the quality
of our new programs and partners, and the strength of our retail and automotive
distribution. What has us most encouraged near-term are positive signs pointing
to a continuing automotive market recovery. We continue to take steps to
improve our competitive and financial position.”
Electronics sales
were $94.5 million for the 2011 fiscal first quarter as compared with $79.0
million for the 2010 fiscal first quarter, an increase of 19.6 percent.
Electronics sales were positively impacted by the addition of new OEM sales and
customers, resulting from the company’s acquisition of Invision Automotive
Systems, as well as higher aftermarket sales in security and mobile video, and
new sales of FLO TV automotive entertainment systems.
Offsetting this
increase were declines in the company’s audio business and lower consumer
electronics products both domestically and internationally as a result of
continued weakness in the global economies. As a percentage of sales, electronics
represented 72.5 percent for the quarter, compared with 65.9 percent in the
comparable-prior year period.
Accessory sales
were $35.8 million for the fiscal first quarter as compared with $40.8 million the
same time last year, a decrease of 12.3 percent. The decline in accessory sales
is directly attributed to lower sales of digital antenna products for the
comparable periods, as last fiscal year’s first quarter included approximately
$8.0 million of antenna sales related to the industrywide switch from analog to
digital TV.
The decline was
also attributed to lower consumer spending given current market conditions, and
was partially offset by higher sales of international accessory products, both
in existing business and through the addition of the Schwaiger acquisition. As
a percentage of net sales, accessories represented 27.5 percent for the first
quarter this year and 34.1 percent in the prior fiscal first quarter.
Lavelle continued,
“While market concerns remain, both domestically and abroad, we believe we are
positioned to weather the turbulent markets and emerge stronger long-term.”
