Audiovox announced results for its fiscal 2008 first quarter ended May 31, 2007. The company reported net sales for the fiscal 2008 first quarter of US $128.3 million, an increase of 15.2 % compared to $111.3 million reported in the comparable prior year quarter. Net income was $2.2 million or $0.10 per diluted share compared to net income of $1.5 million or $0.07 per diluted share in the fiscal 2007 first quarter.
As of March 1, 2007, the company changed its reporting structure to reflect its new realignment and will now be reporting consolidated net sales by two product categories, Accessories and Electronics.
Accessories sales increased approximately 743.8% to $33.3 million in the fiscal 2008 first quarter, up from $3.9 million in the similar period last year. This increase was due to incremental sales generated from the recently acquired Thomson and Oehlbach operations. As a percentage of net sales, accessories represented 25.9% compared to 3.5% in the fiscal 2007 first quarter. The Company expects accessory sales to represent a higher percentage of total net sales as compared to the prior year.
Electronics sales, which include both mobile and consumer electronics were $95.0 million, a decrease of 11.5% compared to $107.4 million reported in the three-month period ended May 31, 2006. This decline was due to lower sales of consumer goods, primarily LCD TVs and portable DVDs. Impacting these two categories were shortages of flat panel displays, which has been experienced industry-wide. Offsetting these declines were improved year-over-year sales in the Jensen Mobile, Phase Linear and Satellite Radio product lines. Electronics sales represented approximately 74.1% of net sales in the fiscal 2008 first quarter compared to 96.5% in the similar period last year.