Hauppauge, N.Y. - Audiovox reported profits it both its fiscal year and fiscal fourth quarter, both of which ended Feb. 28.
Audiovox net income of $22.5 million is compared with a net loss of $71.0 million for the prior year. Net income was helped by a $11.3 million net tax benefit and the purchase gain of $5.4 million related to the purchase of Schwaigner that was completed it is fourth quarter.
Net sales for fiscal 2010 were $550.7 million, compared with net sales of $603.1 million in the comparable fiscal 2009 period, a decrease of 8.7 percent.
Pat Lavelle, president/CEO, said in a prepared statement that during fiscal 2010, "We took aggressive steps to realign our organization and improve our competitive position to drive profitability. Our margins were up despite lower sales, we made smart overhead reductions and we acquired businesses that greatly enhance our product portfolio and distribution."
Accessories sales for fiscal 2010 were $175.7 million, an increase of 14.3 percent as compared with $153.7 million reported in the comparable fiscal year period. This increase is due primarily to the introduction of new products and customers, as well as additional sales generated from the Schwaiger acquisition in October 2009.
Also driving this increase were higher sales of antennae products, particularly in the first half of fiscal 2010 driven by the changeover from analog to digital TV, as well as higher sales of other accessory products under the Terk, Acoustic Research and RCA brands.
Electronics sales were $375 million for fiscal 2010, compared with $449.4 million in the previous year, a decrease of 16.6 percent.
Audiovox experienced lower sales volumes for the year as compared with the prior year, due in large part to the dramatic reduction of car sales and also because it chose not to participate in marginally profitable seasonal promotions. Additionally, lower sales were directly related to the company's decision in fiscal 2009 to exit various high-volume and low profit product categories, including flat-panel TVs, portable navigation and GMRS.
Offsetting the declines in the electronics category were higher sales of Sirius satellite radio products, new sales from acquisitions and the introduction of FLO TV products.
In the fiscal fourth quarter Audiovox reported net income of $6.6 million, compared with a $70 million loss in the prior year's fourth quarter.
Net sales for the fiscal 2010 fourth quarter were $150.3 million, compared with net sales of $115.7 million reported in the prior year period, an increase of 29.9 percent.
Accessories sales for the quarter were $43.1 million, compared with $43.6 million for the prior year's fourth quarter, a drop of 1.1 percent.
Electronics sales were $107.3 million for the fiscal 2010 fourth quarter, compared with $72.1 million for the comparable fiscal 2009 period, an increase of 48.8 percent.
Audiovox had sales increases in many of its core consumer offerings, including digital MP3 players, camcorders and clock radios, as compared with the prior year's fiscal fourth quarter, as well as new sales related to the launch of FLO TV PTV.
In mobile, sales were up over the fiscal 2009 fourth quarter due primarily to increases in satellite radio, security and multimedia, and the addition of new sales from Invision, Omega and FLO TV.