VOXX announced today that it expects its Automotive Electronics segment to double in sales over the next three years.
Fueling the growth is the acquisition of DEI (Directed and Directed Canada) and VSM (Rostra) as well as new OEM contracts.
For the recent quarter, ended November 30, 2020, VOXX Automotive Electronics sales increased 105.1 percent over last year to $61.5 million, versus $30 million last year. Most of that increase was due to the new sales from Directed and VSM, said Pat Lavelle, VOXX President and CEO.
Both “the VSM and DEI acquisitions are fully integrated and performing well,” he said on a conference call Tuesday.
Within the Automotive Electronics segment, aftermarket product sales were $47.4 million for the quarter, marking an increase of $28 million over last year or 144.9 percent. Some of that was due to “overall higher sales of higher margin aftermarket remote start and security products,” as well as DEI and Rostra, said VOXX.
OEM sales were $14.1 million, up 32.6 percent. VOXX said OEM sales of its EVOLVE rear-seat entertainment system with Amazon’s Fire TV continues to grow. EVOLVE integrates Fire TV directly into the RSE system. Passengers can watch content recorded with Fire TV Recast or saved locally on the device. Content is streamed using WiFi or 4G LTE, or mobile hotspot. Fiat Chrysler Automobiles (FCA) and Ford are scheduled to launch the system between June and August this year.
VOXX saw a strong quarter for its premium audio sector, with Lavelle acknowledging that consumers sheltering at home during the pandemic sought to upgrade home audio and home electronics systems. Premium audio sales increased by $59.4 million or 111.6 percent. The increase included the first product sales from VOXX’s new agreement with Onkyo and Pioneer.
Overall net sales for the quarter, also including VOXX’s biometrics segment and other consumer electronics totaled $201.1 million, an increase of $91. million or 82.6 percent compared to $110.1 million for the quarter a year ago.
Total operating income was $18.6 million compared to $0.1 million a year ago. Operating expenses were $39.6 million up from $31.3 million, which included $4.7 million in expenses in the DEI and VSM acquisitions.
Net income was $18.3 million compared to $2.5 million a year ago.
Momentum seen in the recent fiscal Q3 is expected to carry over to fiscal Q4, said Lavelle.