HAUPPAUGE, N.Y., Oct. 11 /PRNewswire-FirstCall/ -- Audiovox
Corporation (Nasdaq: VOXX) today announced results for its fiscal
third quarter and nine-months ended August 31, 2005.
Audiovox Corporation (the "Company") reported fiscal 2005 third
quarter net sales of $122.9 million, a decrease of 7.3% compared to
net sales of $132.6 million reported in the fiscal third quarter of
2004. Net loss from continuing operations for the 2005 fiscal third
quarter was $3.6 million or a loss of $0.16 per diluted share compared
to net income of $37,000 or earnings per diluted share of $0.00 in the
comparable prior year period. Including discontinued operations, the
Company reported a net loss of $3.7 million or a loss per diluted
share of $0.17 compared to net income of $5.3 million or $0.24 per
diluted share in the fiscal third quarter of 2004.
Mobile Electronics, which represented 64.0% of net sales, came in at
$78.6 million, down 21.3% compared to net sales of $99.8 million
reported in the comparable prior year period. This decline was
primarily related to the reduction of selling prices in satellite
radio Plug-N-Play units and certain discontinued mobile video
products. As previously announced, the Company took an inventory
write down of $3.8 million to reflect current market conditions in the
satellite radio category, which has seen prices on Plug-N-Play units
fall by roughly 50%. Offsetting these declines were stronger sales of
the Company's Jensen branded auto sound products, Terk products and
the introduction of new mobile video systems. Consumer Electronics,
which represented 36.0% of net sales, had sales of $44.4 million, an
increase of 35.2% compared to net sales of $32.8 million reported in
the fiscal third quarter of 2004. This increase was due primarily to
higher sales of LCD flat- panel TV's and portable DVD products.
Gross margins for the third fiscal quarter of 2005 declined primarily
to the satellite radio inventory write down, increased consumer
electronics sales at traditionally lower margins and the lower margins
associated with the remaining sales of discontinued mobile video
products. This decline was partially offset by higher margins from
the Terk and Jensen product lines.
Operating expenses for the fiscal 2005 third quarter were $21.3
million, a decrease of 3.6% as compared to operating expenses of $22.1
million reported in the fiscal third quarter last year. The
reductions in operating expenses were primarily in selling, general
and administrative expenses and were partially offset by higher
expenses associated with increased technical and engineering support.
Other income came in at $2.5 million as compared to $580,000 reported
in the comparable prior year period. This increase was primarily
related to higher interest income generated during the quarter.