Audiovox 2003 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2003 Audiovox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 159

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159

Results of Operations
The following table sets forth for the periods indicated certain statements
of operations data for the Company expressed as a percentage of net sales:
Percentage of Net Sales
Years Ended November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−
2001 (1) 2002 2003
−−−−−− −−−−−− −−−−−−
Net sales (2):
Wireless
Wireless products 74.3% 63.7% 59.4%
Activation commissions 2.1 2.2 1.3
Residual fees 0.2 0.2 0.2
Other 0.1 0.1 −−
−−−−−− −−−−−− −−−−−−
Total Wireless 76.7 66.1 60.9
−−−−−− −−−−−− −−−−−−
Electronics
Mobile electronics 12.4 20.8 22.2
Sound 4.5 5.1 5.9
Consumer electronics 6.3 7.9 10.9
Other 0.1 0.1 0.1
−−−−−− −−−−−− −−−−−−
Total Electronics 23.3 33.9 39.1
−−−−−− −−−−−− −−−−−−
Total net sales 100.0 100.0 100.0
Cost of sales (94.4) (93.2) (90.6)
−−−−−− −−−−−− −−−−−−
Gross profit 5.6 6.8 9.4
Selling (2.4) (2.7) (2.8)
General and administrative (3.6) (5.0) (4.5)
Warehousing and technical support (0.3) (0.4) (0.5)
−−−−−− −−−−−− −−−−−−
Total operating expenses (6.3) (8.1) (7.8)
−−−−−− −−−−−− −−−−−−
Operating income (loss) (0.7) (1.3) 1.6
Interest and bank charges (0.5) (0.4) (0.3)
Equity in income in equity investments 0.3 0.2 0.2
Gain on issuance of subsidiary shares −− 1.3 −−
Other, net −− (0.4) 0.1
−−−−−− −−−−−− −−−−−−
Income (loss) before provision for (recovery of) income
taxes, minority interest and cumulative effect (0.9) (0.6) 1.6
Provision for (recovery of) income taxes (0.3) 1.2 0.7
Minority interest 0.1 0.4 −−
Cumulative effect −− −− −−
−−−−−− −−−−−− −−−−−−
Net income (loss) (0.6)% (1.3)% 0.9 %
======= ======= ======
(1) See Note (2) of Notes to Consolidated Financial Statements.
(2) Effective March 1, 2002, the Company adopted Emerging Issues Task Force
(EITF) Issue No. 01−9, "Accounting for Consideration Given by a Vendor to a
Customer". Upon adoption of this Issue, the Company reclassified its sales
incentives offered to its customers from selling expenses to net sales.
41