Audiovox 2003 Annual Report Download - page 138

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2001, 2002 and 2003
(Dollars in thousands, except share and per share data)
QUARTER ENDED
(Dollars in thousands, except per share data) Feb. 28 May 31 Aug. 31 Nov. 30
−−−−−−−− −−−−−− −−−−−−− −−−−−−−
2003
Net sales 296,818 301,010 265,822 460,252
Gross profit 25,468 25,612 27,831 45,295
Operating expenses 21,007 22,558 25,381 33,457
Income before provision for income taxes,
minority interest, and cumulative effect 2,628 3,355 2,442 12,611
Provision for income taxes 1,040 918 2,606 4,843
Minority interest income (expense) (380) (363) 811 (458)
Net income 1,208 2,074 647 7,310
Net income per common share before
cumulative effect:
Basic 0.06 0.10 0.03 0.33
Diluted 0.05 0.09 0.03 0.33
Net income
Basic 0.06 0.10 0.03 0.33
Diluted 0.05 0.09 0.03 0.33
(23) Fourth Quarter Adjustments for Fiscal 2002
During the fourth quarter of fiscal 2002, the Company recorded the
following adjustments to its statement of operations (i) a $13,090
valuation allowance for deferred tax assets that were considered more
likely than not to be unrecoverable related to the Wireless segment (Note
14); (ii) an inventory obsolescence charge of $7,665 and $2,725 for the
Wireless Group and Electronics Group, respectively, relating to inventory
(Note 1); (iii) a $1,158 other−than−temporary impairment charge related to
investment securities (Note 8); (iv) a $2,091 bad debt reserve related to
certain customers whose financial condition and ability to pay their
outstanding receivables became doubtful during the fourth quarter; and (v)
the reversal of unearned sales incentives of $763 and $947 for the Wireless
Group and Electronics Group, respectively. The Company has determined that
none of these adjustments relate to prior quarters.
(Continued)
137