Audiovox said it will look for ways to expand Klipsch to its automotive distribution, but didn’t explain further.
On a conference call today, Audiovox Corp’s head Pat Lavelle outlined plans to grow Klipsch’s already profitable business by expanding into new product areas as well as strengthening its distribution overseas, but he offered few specifics.
We’re waiting on a statement on how this may apply to automotive, and will post it, when it arrives.
Also regarding the car AV market Lavelle said that a spike in gas prices could impact Audiovox’s general sales as the company does a lot of business in SUVs. “We anticipate the automotive business will continue to grow, but as we all know, once gas gets over $4 a gallon, there’s an impact on SUV sales. That is the bulk of our product sales, on SUVs, so we do expect the recent upturn in gas prices will have some impact on our auto business,” said Lavelle.
He reiterated earlier promises to retain the quality of Klipsch products, now that Audiovox has completed the purchase of Klipsch for about $166 million. “We have no intention of changing the quality….materials that go into Klipsch products. We have no plans to change their approximate 200 person workforce.”
Klipsch has a number one market share in loudspeakers in the U.S., as per NPD, said Audiovox. In addition to loudspeakers, it makes headphones, speaker docks and computer speakers. It’s a leading provider to Apple and Audiovox hopes to expand the working relationship with Apple beyond headphones.
15 percent of Klipsch’s overall sales are in professional, commercial and custom sales. Klipsch estimates that over 50 percent of new movie theaters in the Americas have installed Klipsch products. Audiovox said it also plans on creating new distribution alliances.
40 percent of Klipsch products are distributed outside the U.S. and Audiovox plans to strengthen Klipsch sales deeper into Europe and elsewhere. It may also export Klipsch’s made in America products to China.
Some of Klipsch products are built in a factory in Hope, AK and some products are produced overseas.
As announced last week, Klipsch is now a wholly owned subsidiary of Audiovox Corporation and will operate as a stand-alone company, headquartered in Indianapolis and run by its current management team.
Audiovox says the purchase should generate about $170 million in net sales for its coming fiscal year ending in February 2012. Revenue for the combined companies should reach about $730 million.
Source: Audiovox Corp.
Paul Klipsch is now turning in his grave after seeing all the damage done to his wonderful company by past management WAY TO GO !!!!!!!!!!!!!!!!
Jimmy Wilson Jr