VOXX reported a 90 percent increase in sales for its recent quarter ended in May compared to a year earlier, and it revealed Directed’s share of its remote start earnings.
Total VOXX aftermarket automotive product sales soared in the recent quarter by $18 million, mainly due to the additional contribution of Directed. Of the $18 million gain, $12 million was due to the acquisition of Directed, reported VOXX.
Total aftermarket sales were $27.7 million as compared to $9.6 million for the same quarter a year ago. In addition to remote start, gains were reported in rear seat and video entertainment, telematics, and satellite radio.
The company also reported on several trends that are shared by other suppliers, providing a glimpse into aftermarket challenges this year.
VOXX said “higher supply chain costs and shipping delays” will impact its next quarter. President and CEO Pat Lavelle said, “We still anticipate growth, but less than initially anticipated.”
As did many companies, VOXX raised prices during the quarter to offset higher product and materials costs.
Responding to an analyst’s question Tuesday, Lavelle said, “Historically, I don’t think we’ve seen situations like this before. There have been parts shortages, but COVID really has impacted so many different areas, whether it’s chip production, raw materials, container delays, shipping delays, port problems…”
VOXX said it is prepared to ship products by any method necessary to keep the warehouses full. It has built up a supply of product ready to ship so as to keep product flowing, it claimed.
“Obviously, the holiday season is always a crunch. I think it’s going to be challenging. That’s why we’ve gone out and laid in orders…the goal is getting it into the country however which way we have to bring it in to secure sales,” Lavelle said.
VOXX said some of its OEM sales in remote start were impacted by the global semiconductor shortage.
The company continues to make gains in its OEM automotive and aftermarket businesses. OEM deals in the past two years amounted to $500 million and more deals are in the pipeline.
VOXX has a new rear seat entertainment contract with Infiniti for the QX80 amounting to $1.5 million over 5 years with shipments starting this month. The company was awarded a new Volvo deal in Europe for LED modules on heavy duty trucks. VOXX was also awarded a small OEM program from Nissan on fog lights, which it hopes will expand. Some of these deals are the result of VOXX’s purchase last year of Rostra’s parent company, Vehicle Safety Holding Corp.
VOXX continues to ship Ford rear seat entertainment with a new EVOLVE RSE with Amazon Fire TV built in scheduled to reach dealers in February 2022. It is also supplying Stellantis (Jeep, Pacifica) with Fire TV product.
In total, in Automotive Electronics, sales rose almost 150 percent for the quarter to $42.7 million compared to $17.3 million a year ago.
Regarding VOXX’s purchase of Onkyo, it is expected to go through in August.
Total VOXX net sales for the quarter increased $65.1 million or 90.4 percent year-over-year. The company reported a first quarter operating loss of $0.4 million, which marked a $7.7 million year-over-year improvement. The loss was due to attorney fees for the Onkyo and other deals and the company would have seen an operating gain otherwise, Lavelle said.
Net income for the quarter was $2.7 million, an $11 million year-over improvement.
