VOXX said its DEI remote start sales were up for the recent quarter but overall VOXX aftermarket sales were down due to product shortages and early buy-ins.
DEI sales were up 8 percent compared to last year and the subsidiary (since July 2020) is expected to add $70 million in annual sales, overall.
For the recent Q3, ended November 30, total aftermarket sales fell by $4.3 million, mainly due to supply chain issues and the fact that many retailers brought their product earlier in the year in anticipation of shortages, which took sales away from the recent quarter. Most of the decline was in satellite radio fulfillment, backup cameras, lighting and turn signal switches, which together accounted for $2.6 million of the shortfall, said VOXX.
Aftermarket sales for the quarter tallied $43.1 million versus $47.4 million a year ago. OEM sales were $18.5 million compared to $14.1 million last year. Total Automotive Electronics sales amounted to $61.6 million, compared to $61.5 million a year ago.
VOXX said OEM sales would have been higher but chip shortages caused stoppages in OEM production.
The company continues to draw in new OEM business aided by its Amazon Fire TV-based rear seat video system called EVOLVE. Dodge added an order of $125 million during the quarter for Ram trucks, model years 2024 to 2026.
Automotive Electronics gross margins fell to 23.8 percent during the quarter, compared to 25.7 percent last year due to increased cost of materials and shipping, higher tariffs, a general increase in the cost of doing business, and costs related to the new OEM rear seat entertainment programs. VOXX raised prices but some of those increases hadn’t taken effect as of November 30.
For all divisions, including audio and biometrics, VOXX International reported a loss for the quarter of $38.1 million, mainly due to a legal dispute, through arbitration, which resulted in an unfavorable award of $39.4 million that VOXX is appealing.
Operating income for the quarter was $7.8 million, compared to $18.1 million.
See the full VOXX Q3 fiscal 2022 earnings report here.