Audiovox Corporation reported 2005 fiscal first quarter net sales from continuing operations of U.S. $116 million, a decrease of 14 percent compared to net sales of $135.4 million reported in the fiscal first quarter of 2004. Net loss from continuing operations for the fiscal 2005 first quarter was $0.6 million or a loss of $0.02 per share compared to net income of $0.7 million and earnings per share of $0.03 in the comparable prior year period. Including discontinued operations, the company reported a net loss of $1.2 million or a loss of $0.05 per basic and diluted share compared to net income of $1.9 million or earnings per share of $0.09 basic and $0.08 diluted reported in the fiscal first quarter of 2004.
John J. Shalam, chairman, president, and CEO of Audiovox stated, "Despite the first quarter performance, we remain on target with our sales guidance for the full fiscal year of 3 to 8 percent growth, excluding any acquisitions that may arise."
Mobile Electronics, which represented 64.4 percent of net sales, came in at $74.7 million, down 16.2 percent compared to $89.1 million reported in the comparable prior year period. This decline was related primarily to the continual price erosion and competition within the mobile video category. Consumer electronics, which represents 35.6 percent of net sales, had sales of $41.3 million, a decline of 10.7 percent compared to net sales of $46.3 million reported in the fiscal first quarter of 2004. This decline was due primarily to a shift in large load-in orders that moved from first quarter 2004 to second quarter in 2005.
On February 25, 2005, the company entered into a plan to discontinue ownership of its majority owned subsidiary, Audiovox Malaysia (AVM) and sell its ownership to the current minority interest shareholder. Included in loss from discontinued operations for the three months ended February 28, 2005 is a write-down charge of $0.4 million for AVM assets as a result of the intended sale of AVM. The decline of income from discontinued operations for the quarter ended February 28, 2005 is due to increased losses of AVM as well as residual expenses from the prior year sale of the cellular business on November 1, 2004. (Yahoo Finance)
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