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."