Audiovox 2002 Annual Report Download - page 10

Audiovox Corporation 2002 Annual Report
REPORT OF THE CHIEF FINANCIAL OFFICER
CONTROL
Building on a proven past
optimistic for a promising future
8
Like the year prior, fiscal 2002 was challenging in that economic
and political conditions around the world continued to impact
overall market demand and adversely sway consumer purchasing
patterns. Nevertheless, we enter our fiscal year 2003 in sound
financial shape, with a strong balance sheet, relatively little debt
and the financial facilities in place to allow for growth in the
upcoming year.
In March 2002, our Electronics group, Audiovox Electronics Corp.
(AEC) acquired the assets of Code Alarm Inc., further strengthen-
ing our position in the automotive security aftermarket. And in
May 2002, Toshiba Corporation increased its minority interest
in our wireless subsidiary, Audiovox Communications Corp. (ACC)
to 25% for $24 million, thus strengthening our financial position.
In accordance with new rules and regulations instituted by the
Securities and Exchange Commission (SEC) and Nasdaq National
Market姞, we have expanded our levels of disclosure and are work-
ing diligently to ensure corporate governance is of the utmost
importance. In response to proposed rules implementing sections
of Sarbanes-Oxley, the company established committees to review
internal controls over financial reporting to ensure consistent,
credible and transparent reporting.
We anticipate a return to profitability and for business to improve
in the second half of our fiscal year 2003, driven primarily by new
products in our wireless division and the continued strength of
our consumer and automotive electronics products. Audiovox
is positioned to take advantage of improving conditions in the
marketplace and we remain confident in our ability to identify
growth opportunities and deliver results that will drive share-
holder value over the long term.
Sincerely,
C. Michael Stoehr
Senior Vice President
and Chief Financial Officer