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Audiovox reports surge in profits

Patrick Lavelle, president and chief executive of Audiovox,

Patrick Lavelle, president and chief executive of Audiovox, of Hauppauge, an electronics products distributor. (June 2010) Photo Credit: Newsday, 2010

Audiovox Corp., the Hauppauge maker of consumer and in-vehicle entertainment products, saw a fivefold increase in profit for its quarter ended Aug. 31, and the company's chief executive said that an increase in sales to carmakers played a part in the improvement.

The 540 percent increase in profit came as the company improved its revenue overall by 22 percent, led by increased sales of a range of products, including its Klipsch speaker and headphones brand, the company said Tuesday.

Higher margins and lower core overhead costs played a part in the profit increase, the company said.

Company shares on Thursday opened at $5.86, representing a 14 percent decline in share price over the past 12 months. Shares dropped $0.11 in early trading Thursday.

Audiovox had income of $3.4 million on revenue of $158.3 million, up from $645,000 profit on $129.2 million in the same quarter for 2010. With about 1,000 employees, Audiovox has a market capitalization of $146 million,

Net income per common share, diluted, rose to $0.15, compared to $0.03 for the prior-year quarter.

"... Car sales over the past few months have rebounded and all signs are pointing to continued strength," Audiovox chief executive Pat Lavelle said in a prepared statement. "Our international operations are performing well, despite weakness in some European countries, and our Klipsch acquisition is meeting plan with a lot of potential to grow in the years ahead."

The company's brands include Advent, Acoustic Research, Jensen, Omega and RCA.

Photo: Audiovox chief executive Pat Lavelle.

 

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