Audiovox 1999 Annual Report Download - page 10

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The Division’s 1999 revenues were $230 million an increase of 31.5%
over fiscal 1998. Since its inception, the Electronic Division has consis-
tently met its sales and profit targets. Most notable of the Division’s
1999 highlights was the continued growth in the mobile video and con-
sumer electronics products.
The electronic division divides its sales into sound, mobile electron-
ics and consumer electronics. The sound, mobile electronics groups
focus on the 12-Volt specialist and car dealer with auto sound, vehicle
security, mobile video and accessories. The consumer group targets the
mass merchandiser with a wide variety of electronics products that
include, home and portable stereo; two-way (FRS) radios and Internet
related products. The Electronics division also supports a considerable
OE and private label effort for vehicle manufacturers. The QS/ISO 9001
Registration awarded in 1999 greatly enhances the
OE sales effort.
The Division’s mobile video sales were driven by
increases both in the aftermarket and on the OE level
and increased over 400% in fiscal 1999. In late 1998
we were awarded a contract to supply an Audiovox branded mobile
video system to Nissan. For model year 2000 an OE version is installed
on all Nissan Quest 2000 models sold in the U.S. market. Aftermarket
product lines now include nearly 30 vehicle specific overheads for the
most popular SUV’s in the market. During 2000 we expect to introduce
new larger screen overhead systems, in dash DVD for mobile video
and a new lower cost portable video system for our mass merchandiser
Rampage brand.
Our mobile electronics group has signed agree-
ments with XM Satellite Radio and Sirius Radio to pro-
duce products for the newest technology in car audio.
Satellite radio will offer the consumer a choice of 200
programs, beamed by satellite directly to your car with
crystal clear reception, no matter where you are in the
U.S. First satellite radios are expected in 2001.
1999 also saw the Division’s consumer electronics sales grow
by over 200% led by FRS two-way radios. By the end of the year we
had one of the broadest FRS lines available with an approximate 20%
market share. In addition, during the year we introduced the Company’s
first Internet related product the MPDJ. This palm-sized player/recorder
allows you to record music from the Internet in MP 3 format and take
it anywhere. In 2000 we expect to introduce additional consumer elec-
tronics products throughout the line. FRS two-way radios will have
expanded features including FM radio, Weather band and GPS.
New Internet products will include e-mail communication devices and
mobile MP 3 player/recorders with expanded capabilities.
Our core business objective is to increase our earnings by capital-
izing on emerging technology opportunities and increasing our penetra-
tion in global markets. Our business strategy is to leverage our ability
to source product and our marketing flexibility to capitalize on current
consumer trends.
AUDIOVOX
8
Electronics
DIVISION
Patrick Lavelle
Sr. Vice President
Electronics Revenues
(U.S. dollars in millions)
97.4
91.8
4.7
85.0
78.3
11.8
38.2
113.4
78.7
’97
sound
mobile electronics
consumer electronics
’98 ’99