Audiovox 2008 Annual Report Download - page 12

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License and royalty income is recorded upon sale to the end-user and amounted to $2,190, $2,200, $537 and $1,959 for the years
ended February 29, 2008, February 28, 2007, the three months ended February 28, 2006 and the year ended November 30, 2005,
respectively.
Distribution and Marketing
We sell our products to:
•power retailers,
•mass merchants,
•regional chain stores,
•specialty and internet retailers,
•independent 12 volt retailers,
•distributors,
•new car dealers,
•vehicle equipment manufacturers (OEM), and
•the U.S. military
We sell our products under OEM arrangements with domestic and/or international subsidiaries of automobile manufacturers such as
Ford Motor Company, Daimler Chrysler, General Motors Corporation, Toyota, Kia, Mazda, Jaguar, Subaru and beginning in Fiscal
2009, Porsche. These projects require a close partnership with the customer as we develop products to meet specific
requirements. OEM projects accounted for approximately 9%, 11%, 13% and 10% of net sales for the years ended February 29, 2008,
February 28, 2007, the three months ended February 28, 2006 and the year ended November 30, 2005, respectively.
Our five largest customers represented 25%, 18%, 16%, and 24% of net sales during the years ended February 29, 2008, February 28,
2007, the three months ended February 28, 2006 and the year ended November 30, 2005, respectively. During the years ended
February 29, 2008, February 28, 2007, the three months ended February 28, 2006 and the year ended November 30, 2005, no single
customer accounted for more than 10% of net sales
We also provide value-added management services, which include:
•product design and development,
•engineering and testing,
•sales training and customer packaging,
•instore display design,
•installation training and technical support,
•product repair services and warranty,
•nationwide installation network, and
•warehousing.
We have flexible shipping policies designed to meet customer needs. In the absence of specific customer instructions, we ship
products within 24 to 48 hours from the receipt of an order from public warehouses and leased facilities throughout the United States,
Canada, Mexico, Venezuela and Germany.
Product Development, Warranty and Customer Service
Our product development cycle includes:
•identifying consumer trends and potential demand,
9
Source: AUDIOVOX CORP, 10-K, May 14, 2008