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Audiovox Posts Higher Sales, Lower Profits

Hauppauge, N.Y. – Audiovox
reported slightly higher sales but lower net income in its fiscal second
quarter, ended Aug. 31.

Net sales for the
second quarter were $129.3 million, an increase of 3.5 percent compared with
net sales of $124.9 million reported in the comparable year-ago period.

Net income for the
quarter was $600,000, compared with net income of $2.8 million a year ago. Net
income for the prior year included an income tax benefit of $1.6 million.

Pat Lavelle,
president/CEO, said,  “The slower-than-anticipated
economic recovery has impacted our sales and our bottom-line performance
through the first half of the year, but we remain profitable given the steps
taken to improve our margins, better align our overhead and improve operating
efficiencies. Our OEM presence is growing as are our retail partnerships, and
our cash position and balance sheet remain strong.”

He noted, “We
posted modest improvements in our top-line this quarter, driven by our
acquisitions, new OEM programs and aftermarket automotive sales, as well as
continued growth in our international operations. The consumer market in the
U.S. however, continues to suffer as consumer spending for non-essential items
remains low.”

 Electronics sales were $95.2 million for the
2011 fiscal second quarter, compared with $79 million for the three months
ending Aug. 31, 2009, an increase of 20.5 percent. Electronics sales were
positively impacted by the acquisition of Invision Automotive Systems, new OEM
programs, and higher aftermarket sales of audio, video and security products
for the mobile market.

represented 73.6 percent of net sales for the quarter, compared with 63.3
percent a year ago.

Accessory sales
were $34.1 million for the quarter, compared with $45.9 million in the prior
year, a decrease of 25.6 percent. The majority of this decline was directly
related to lower sales of digital antenna products in the fiscal 2011 second
quarter as last fiscal year’s results were positively influenced by the
transition from analog to digital technology.

Excluding the impact
of antennas, accessory sales were down 5.3 percent, which can be attributed to
weakness in consumer spending similar to core electronics products.

represented 26.4 percent of sales for the quarter, compared with the prior
year’s 36.7 percent share.