Best Buy Gets FLO TV
July 13, 2010 by Amy Gilroy
Filed under Car 3, Industry news
Audiovox said Tuesday morning that Best Buy will begin selling the FLO TV car tuner system this quarter as well as the first portable DVD player with FLO TV built in.
The news came as Audiovox announced its first quarter results, reporting growth in mobile video and security. No further details on Best Buy were provided.
For the quarter ended May 31, Audiovox said it was encouraged by some positive signs in the new car market but recovery from the recession is slower than expected.
Total net sales for its fiscal Q1 2011 were up almost 9 percent to $130.3 million and net income more than doubled to $1.1 million after a favorable tax settlement.
Electronics sales were up almost 20 percent due to new OEM sales from Invision Automotive Systems, acquired in February but also from improved aftermarket sales in mobile video, security and new sales in FLO TV. The gains were offset by declines in audio and in other CE product sales, said the company. Total electronics sales for the fiscal Q1 were $94.5 million, up from $79 million for the period last year.
Accessory sales declined over 12 percent to $35.8 million due to lower sales of digital antenna products: last year the industry was switching over to HDTV and Audiovox sold $8 million in antennas in fiscal Q1.
Gross margins were 20.8% for the period versus 19.1% last year. Operating expenses increased to $28.5 million from $22.7 million as the company spent $3.3 million in expenses to acquire Invision and Schwaiger, plus other fees. Otherwise, core overhead costs were essentially flat.
President and CEO Pat Lavelle said, “While we showed improvement over last year’s first quarter, like most companies, we are still feeling the effects of an economic recovery that is materializing slower than expected…” But he noted that the company is still positioned for profits and postured to gain market share when the economy improves.
Audiovox also continues to seek companies to purchase. “Despite two acquisitions last year, our cash position has improved. Our balance sheet is strong and we remain active in the M&A [mergers and acquisitions] arena. We continue to look for companies that will strengthen our product mix and distribution…” added Lavelle.
Source: Audiovox Corp.
