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AUDIOVOX COMMUNICATIONS CORP.
Digital sales in the 4th quarter reached
32% of total. Our CDM 3000 was the num-
ber one selling digital phone in the market.
—Philip Christopher
President and Chief Executive Officer
Audiovox Communications Corp.
“
“
Audiovox Communications Corp. is a majority-owned subsidiary of Audiovox Corporation. The Communications
group’s 1998 revenues of $441.6 million represented 72% of the total for Audiovox Corporation. Our net sales have
grown at a compounded annual growth rate of over 22.8% from 1993 to 1998. International sales accounted for 13% of
total ACC revenue for fiscal year 1998.
ACC is one of the top four suppliers of wireless products and specializes in developing strategic partnerships with
the carriers. Our growth has been driven principally by increases in domestic and worldwide demand for wireless
products, expansion into new technologies and those continued strong relationships with domestic and international
carriers. Since our entree into the wireless industry in 1984, we have consistently been among the market leaders.
In 1998 we began providing our customer base with digital technology. Our first digital phone, the CDM 3000 sold
over 447,244 units in 1998. Unit sales of digital product went from 0% in 1997 to 32% in fourth quarter 1998 and 18% of
total for overall 1998. In fact, We were the fastest growing company in the CDMA market during 4th quarter 1998.
We market our products worldwide with operation centers and/or sales offices in United States, Canada, Japan,
Korea, Malaysia, Taiwan, Thailand, Peru, Venezuela and the Netherlands. In all, we have more than 800 customers
located in 42 countries on six continents. Our customer base includes Bell Operating Companies, other carriers,
agents, distributors and retailers.
Although we do not manufacture our own products, we believe that the combination of our engineering support with
that of our manufacturing partners, provides our customers with the most up to date technology. For several years we
were named the number one cellular telephone by an independent consumer preference survey. We were the first
company to introduce one touch dialing. We were first with voice activation and SID management (the feature that
allows the customer to program their phone for multi-city use). And we were the first to provide digital features like
caller ID and short message service on our analog phones. We are one of only three suppliers who provide N-AMPS
handsets and one of only two suppliers who provide mobile (in car installed) cellular telephones.
We currently supply wireless products in AMPS and N-AMPS as well as the digital technologies of CDMA, CDMA/PCS
and GSM/PCS, and will add GSM during 1999.