Audiovox 2002 Annual Report Download - page 8

LEADERSHIP
As market leaders, we are able to provide
innovative products for our customers.
PAT LAVELLE’S LETTER TO SHAREHOLDERS
Fiscal 2002 was the most successful year in our history despite
economic uncertainty, a weaker than expected holiday season, a
dock strike and the normal challenges that surround the consumer
and mobile electronics industries. We posted a sales increase of
25% over 2001 with most categories showing increases, especially
mobile video, consumer electronics and vehicle security.
As a result of unsettled world events and a still uncertain economy,
it is a difficult time to predict what will happen in 2003, but our
focus remains unchanged. Our intention is to continue the
momentum achieved in 2002 to maintain and/or increase our
leadership position and market share in our more mature product
lines. In addition, we plan to increase growth by exploring new
market opportunities and introducing several new products that
have been developed as a logical expansion of the Company’s
success. As the number one supplier of mobile video products
and a market leader in portable DVD and under-counter TV, we
have identified opportunities for expansion into the home flat
panel TV market. Consumer response to our higher end mobile
entertainment systems has been very strong and we believe that
this consumer confidence in the Audiovox brand will transfer to
the home market. To that end, plans for 2003 include the expan-
sion of our video line into LCD TVs and High Definition LCD TVs in
the 10-inch to 30-inch category.
Another new market entry for Audiovox will be cordless telephones
where we will introduce several 2.4 and 5.8 GHz models, featuring
user-friendly features and eye-appealing cosmetics, all digital, all
performance-oriented. Audiovox is no stranger to the communi-
cations industry and we believe this new category will meet with
strong consumer acceptance.
In addition to the emphasis on new markets, we will direct consid-
erable attention to developing marketing partnerships with major
well-known consumer brands. We have just completed a successful
co-promotion with Buena Vista Home Entertainment that included
free Disney titles on VHS or DVD with the purchase of Audiovox
mobile video systems. Our plan is to expand the Disney relationship
in 2003. Recently we launched an Eddie Bauer by Audiovox line
of mobile video products for sale exclusively at Target stores. In
satellite radio, Audiovox has partnered with Sirius Satellite Radio
to supply our satellite radio system in Hertz rental vehicles, and
these are just a few of the programs in place and in the works.
We expect to see growth in our core businesses this year as well.
In mobile video, we have introduced patented overhead built-in
DVD systems and our “Video-In-A-Bag” line now includes a
first-to-market system with both DVD and VCP capability, played
Audiovox Corporation 2002 Annual Report
6