Audiovox Corp. saw solid growth in its automotive business for its fiscal Q3 2011 with sales of auto security and new OEM programs leading the gains.
“During the third quarter, our automotive business, both in the aftermarket and at the OE level, continued to offset the weakness in our consumer and accessory categories,” said president and CEO Pat Lavelle in a refreshingly positive statement on car electronics.
Total electronics sales including car products rose almost 12 percent to $122.7 million compared to $109.7 million a year earlier. Much of the growth was due to sales of Invision OEM products and new agreements with Omega, said the company during a conference call with analysts Tuesday.
Invision sales during the quarter ended November 30, 2010 were $13 million. Satellite radio sales declined during the quarter.
Back up observation products should double this year said the company, which noted that the government has mandated that in 2014 larger vehicles such as SUVs and minivans must include back up cameras.
Audiovox said the mandate should result in an initial boost in sales of aftermarket back up cameras in recently purchased cars. In addition, Audiovox will develop upgrades to factory back up cameras that improve the viewing angle and add active detection of pedestrians and objects around the car.
“We think we could double our sales even this year with what we are doing,” said Lavelle.
Total Audiovox Corp. sales were up but net income fell substantially. Sales for the quarter were $163 million compared to $156 million a year ago. Net income was $3.9 million compared to $12.6 million a year ago.
Accessory sales during the quarter fell almost 12 percent to $40.5 million from $45.9 million a year ago.
Gross margins improved to 21.2 percent up from 19.4 percent and operating expenses increased from $27.1 million to $29.2 million due the acquisitions of Schwaiger and Invision.
No news was offered on negotiations to purchase Klipsch.
Source: Audiovox, autoblog