Audiovox 2000 Annual Report Download - page 10

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Patrick M. Lavelle
President & Chief Executive Officer
Audiovox Electronics Corp.
AUDIOVOX ELECTRONICS
Fiscal 2000 was the most successful year in our division as we
posted the highest sales and profit in our history. In July, we became
a wholly-owned subsidiary of Audiovox Corporation, which will allow
us to focus on our core competencies and the product development
and diversification necessary for future growth.
Our business plan of expanding product lines and leveraging our
strong distribution network has resulted in Audiovox’s ability to move
into product categories that represent “firsts” for us. In the last three
years, we expanded into Mobile Video, FRS two-way Radios, MP 3
Players and Consumer Audio products with fantastic results. Mobile
Video is one of the fastest growing product lines in the company’s
history. Its growth rate was 41% in 2000 and by the end of the year
our mobile video business had captured a 36% market share. Mobile
DVD will lead the way for us in 2001 with a variety of applications
designed to work with our overhead systems and seatback installa-
tions. This year, in addition to DVD, we will move into Navigation
and Home and Portable Video Products. We expect the move to
Navigation to be one of the highlights of 2001 as it adds another
dimension to our mobile electronics product offerings. Our product
line includes navigation systems with high quality sophisticated
features and a variety of options.
In October, we made a major stride in our OE
initiatives as we began shipments to FORD of a rear
seat entertainment system for the Ford Expedition,
one of their most popular SUVs. This contract
will strengthen our OEM program and we believe
will help us as we continue to expand our OE
sales group.
For 2001 our Prestige line of autosound will have over a dozen new
products, featuring CD and separates. Rampage by Audiovox, the
promotional line of autosound, will have a variety of new CD radios
and amps and undergo a packaging face-lift this year. In the auto
security category, Audiovox will add to its already broad line, a con-
firming transmitter system that has over 16 functions. It will be one of
the most sophisticated products in its category on the market today.
The diversification that we made several years ago into consumer
electronics products continues to be a great success and this product
group grew 60% in 2000 making it the largest sales category last
year. New for 2001 will be a number of hot new handheld portable
DVD models with and without screens. DVD will also be included on
a number of home audio shelf systems. Included in our consumer
electronics group are FRS two-way radios. For 2001 we have added
features like Weather Alert and FM Radio. In addition a 5-mile range
GMRS unit with built-in GPS, and two base stations will be part of
the new line.
We are confident that consumer acceptance of the Audiovox brand
will fuel our expansion and diversification into consumer electronics.
We believe that we have all of the marketing elements in place. We
have retailer-friendly programs, exciting products and packaging, and
strong customer service. We expect 2001 to be a challenging year
due to the uncertain economy and tough competition across our prod-
uct lines, however we believe that we will meet our targets and
continue to expand our business.