Audiovox Corporation Reports Fourth Quarter and Fiscal Year 2000 Results - Provides Guidance on Outlook for 1Q01 and Fiscal Year 2001 -
FISCAL 2000 HIGHLIGHTS
* Net sales increase 46.8 % to a record $1.7 billion
* Dataquest ranks ACC #1 in CDMA sales in North America
* ACC begins shipments of web enabled cell phones
* Nearly 9 million cell phones sold
* AEC to supply mobile video entertainment systems to FORD
HAUPPAUGE, N.Y., Jan. 23 /PRNewswire/ -- Audiovox Corporation (Nasdaq: VOXX) today announced financial results for its fourth quarter and year ended November 30th, 2000.
Net sales for the fourth quarter were $510.2 million, a 24.3% increase from net sales of $410.5 million reported in the comparable 1999 period. Net income and income per share were $5.1 million or $0.23 basic and diluted compared to $11.4 million and $0.59 basic and $0.56 diluted in the fourth quarter of 1999. Net income and income per share for the quarter, excluding charges associated with the analog inventory cost reduction of $8.2 million (pre-tax) and the extraordinary gain of $2.2 million (net of tax) recorded in connection with the extinguishment of debt, were $7.8 million or $0.36 basic and $0.35 diluted. Net income and income per share for the quarter, excluding the analog inventory cost reduction were $10.0 million or $0.46 basic and $0.45 diluted.
For the fiscal year ended November 30th, 2000, net sales were $1.7 billion, a 46.8% increase from sales of $1.2 billion in the comparable period one year ago. Net income and income per share were $27.2 million or $1.27 basic and $1.21 diluted compared to $27.2 million and $1.43 basic and $1.39 diluted for 1999. Net income and income per share, excluding charges associated with the analog inventory cost reduction and extraordinary gain, were $30.0 million or $1.40 basic and $1.33 diluted. Net income and income per share for the fiscal year, excluding the analog inventory cost reduction were $32.2 million or $1.51 basic and $1.43 diluted.
John J. Shalam, President and CEO of Audiovox Corporation, commenting on the quarter stated, "Fiscal 2000 has been a landmark year for our Company, and one of the strongest in our history both in profits and sales. We are extremely pleased with the recognition by Dataquest naming Audiovox the #1 supplier of CDMA technology for North America. We are extremely satisfied with our top-line growth in fiscal 2000."
Audiovox Communications Corp., the Company's wireless subsidiary, saw net sales increase 55.3% to $1.4 billion in fiscal 2000 versus $917.0 million reported in the comparable period one year ago. Total unit sales grew by 46% to 8.9 million from 6.1 million units sold in fiscal 1999. As previously announced, in the fourth quarter the Company took measures to withdraw from the analog business and ensure its transition to digital technologies, as digital represented 85% of total units sold versus 61% reported in last year's comparable period. Average selling prices increased to $151 from $142 reported for the three months ended November 30th, 1999, reflecting increased digital sales, particularly the Company's CDM-9000, tri-mode phone.
Philip Christopher, President and CEO of Audiovox Communications Corp., stated, "ACC is now recognized as the top supplier of CDMA products in North America. It is our intention to maintain that position. For 2001, we are excited by the initial response to our second-generation web enabled products and the new PDA's. We expect to capitalize on our demonstrated success with CDMA as we continue to introduce these new technologies. Current orders for our digital products remain strong and I believe this trend will continue in fiscal 2001."
Fiscal net sales for Audiovox Electronics Corp. were $277.8 million, a 14.6% increase over $242.5 million reported in the comparable 1999 period. The increase in revenue reflects increases in demand for mobile video and consumer electronics products. During the quarter, the Company announced an agreement with Ford Motor Company to manufacture an OE version of its mobile video overhead console to be included in Eddie Bauer models of the Ford Expedition SUV for 2001.
GUIDANCE
Based on new product changeover cycles and the current market environment, the Company has revised its near and longer term revenue, unit shipments and earnings per share targets for 2001. For fiscal 2001, the Company guidance is for revenues in the range of $1.8 - $1.9 billion and wireless unit sales between 10 - 10.5 million, which reflects current industry growth estimates. The Company expects that CDMA will represent 88% of wireless unit sales during fiscal 2001. The Company expects income per share to be in the range of $1.50 to $1.55 per share.
For the first quarter of fiscal year 2001, the Company anticipates revenues in the range of $355 to $365 million and expected wireless unit sales of approximately 1.9 million, with the majority of those units being digital products. The Company expects first quarter 2001 income per share to be in the range of $0.18 to $0.21.
Shalam said, "We expect growth to be slow in the first half of fiscal 2001 as a result the combination of an unsettled economic outlook and new product introductions. However, we expect to maintain our leadership position in the CDMA marketplace. Wireless growth is contingent on the timing of new product testing and acceptance cycles by our carrier customers. On the Electronics side we plan to focus our attention on new growth markets including Navigation and DVD while maintaining our leadership position in Mobile Electronics. Some of these new products are effected by new car sales and we will be watching that economic indicator closely."
Shalam further stated, "Notwithstanding our inability to foresee future economic or industry variables which could adversely affect our performance, we continue to address operating and supply cost cutting initiatives to help us meet the impending challenges for fiscal year 2001. The guidance we provided today reflects our single-minded commitment to increasing shareholder value as we execute our business plan for 2001."
Audiovox Corporation will be hosting a results conference call today at 10:00 a.m. (EST). Interested parties may participate in a listen-only mode via a real-time web cast by visiting the Company web site audiovox.com. A replay of the call will be available for thirty days on the Web site for those unable to listen today.
Audiovox Corporation is an international leader in the marketing of cellular telephones, vehicle security and entertainment systems, and consumer electronics products. The Company conducts its business through two subsidiaries and markets its products both domestically and internationally under its own brands. It also functions as an OEM (Original Equipment Manufacturer) supplier to several customers. For additional information, please visit Audiovox on the Web at audiovox.com.
Except for historical information contained herein, statements made in this release that would constitute forward-looking statements may involve certain risks such as our ability to keep pace with technological advances, significant competition in the wireless, mobile and consumer electronics businesses, quality and consumer acceptance of newly introduced products, our relationships with key suppliers and customers, market volatility, non-availability of product, excess inventory, price and product competition, new product introductions and other risks detailed in the Company's Form 10Q for the fiscal quarter ended August 31, 2000. These factors, among others may cause actual results to differ materially from the results suggested in the forward-looking statements.
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CO: Audiovox Corporation
ST: New York
IN: TLS
SU: ERN
01/23/2001 07:31 EST prnewswire.com |
