Audiovox Posts Higher Sales, Lower Profits

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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.

Electronics 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.

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


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