Audiovox 2001 Annual Report Download - page 14

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Controls
Fiscal year 2001 was a challenging year for Audiovox Corporation due to the overall economic conditions and changes
in wireless technology that impacted the business environment we serve. Our balance sheet is strong and flexible
enough to meet these challenges and to provide the support for the plans we have outlined in both our subsidiaries.
As you review our financial reports to our shareholders, you will see increased levels of disclosure. This disclosure
is focused on key issues that have arisen over the last several months, specifically in the areas of off-balance sheet
financing, liquidity, availability of resources, and critical accounting policies. Our company has always taken a con-
servative reporting position on our financial statements and does not rely on specialized accounting treatments.
During fiscal 2001, we have continued to upgrade our IT systems to support our operations and incorporate new
systems support as needed. New and improved systems have been developed for customer service, warranty sup-
port, increased B2B programs and refinements to our website. During fiscal 2001, our Venezuelan subsidiary was
brought on-line allowing our managers to operate locally in Spanish and their host currency while we in the U.S.
simultaneously view and manage their operation in English and U.S. dollars.
Our equity investments continue to perform well and during fiscal 2001 we received cash distributions. In March
2002 we closed on the asset purchase of Code Alarm Inc. by our newly formed subsidiary of AEC, Code System
Inc. We were able to do this with internally generated funds.
We look forward to fiscal 2002 and are prepared to support the business plans of our operating subsidiaries which
call for the introduction of new products and technology. Our outlook is for a generally improving economy and for
business to pick up in the second half of fiscal 2002 as these new products are delivered into the market place.
C. Michael Stoehr
Senior Vice President &
Chief Financial Officer
Report of the Chief Financial Officer
CONTROL
Audiovox 2001 Annual Report 12