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In spite of the difficult times that marred fiscal 2001, Audiovox Electronics Corp. continued its upward growth and finished
the year 8.2% ahead of fiscal 2000, which gave us the best sales year in our history. Strong sales in mobile video and con-
sumer electronics products continue to give us the opportunity to expand distribution and strengthen our customer base. In
addition, brand awareness and acceptance continues to grow. Recently, NPD Techworld research named Audiovox
Electronics Corp. (AEC) as the market leader with a 39% share in the fast growing mobile video market segment and also
positions the Audiovox name among the brand leaders in several other categories.
Mobile Electronics
For the third year in a row, Mobile Electronics sales recorded a strong increase and this category continues to be our leader.
Our mobile video line is one of the broadest in the industry and we expect to maintain our dominance in this market with the
introduction of our new overhead DVD entertainment systems and an expanded line of do-it-yourself mobile video products.
This year marks our company’s entrance into the exciting new field of satellite radio. This new technology will take car
audio receivers from analog to digital and will offer nationwide broadcasts of over 200 channels of music or talk radio with
many channels being commercial free. This technology should trigger new growth in the auto sound industry, which has
been stagnant over the last several years.We have obtained licenses to supply satellite radio in both the XM and Sirius formats
and Audiovox is one of the few companies ready to deliver products in 2002, which should give us a competitive advantage.
There are also new products scheduled in our auto sound, security and remote start lines and we will also introduce
vehicle-tracking products this spring. Our Pursuitrak tracking system was nominated for best in show at the Consumer
Electronics Show in January.
Consumer Electronics
Our Consumer Electronics sales group had another record year as we benefited from increases in FRS and GMRS two-
way radio sales. In addition, we were able to establish Audiovox as the number three supplier of portable DVD players, out-
selling some of the most famous brands in the industry.
New products continue to be a key ingredient in the growth of our company and 2002 will be no exception.There will be a first-
to-market 7-mile range GMRS radio, an expanded line of under counter TV’s and home theater systems utilizing flat panel and
DVD technology, both of which have been very successful in our mobile video line. We believe that our key manufacturing
relationships allow us to enjoy continued success and maintain our competitiveness in this rapidly expanding market.
Growth Initiatives
In addition to growth by new product development and introduction, we plan to increase our business by strategic acquisi-
tions. On March 15th, 2002, we purchased the assets of Code-Alarm; a Detroit based manufacturer of security systems.
The Code-Alarm brand has been synonymous with cutting edge products and has been a long time supplier to the original
equipment car manufacturers, a market segment that we consider key to future growth. The acquisition of Code-Alarm will
strengthen our existing relationship with OEM’s as well as give us new sales opportunities under the Code-Alarm brand in
the aftermarket. The new company we formed with this acquisition is Code Systems, Inc., a wholly-owned subsidiary of
Audiovox Electronics Corp. In February, we signed an agreement with Avis, which allows for Audiovox navigation systems
to be installed in Avis rental cars throughout the United States.
We approach fiscal 2002 with optimism but are ever mindful of the fragile nature of the expected economic recovery. Our
programs are in place and with a modest improvement in the economy, we believe that we are well positioned for another
strong year.
Audiovox Electronics Corp. is committed to growth through new product, new market opportunities and continued expan-
sion of our distribution network.
Sincerely,
Patrick M. Lavelle
President and CEO,
Audiovox Electronics Corp.
Audiovox Electronics Corp. President and CEO Letter
Audiovox 2001 Annual Report 08