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During our fiscal second quarter we will begin shipping these new 1X products.The CDM 9150X has increased
data capability and should help support our carrier partners as they begin to emphasize data. For the consumer,
this phone will provide enhanced speed, streaming video and the ability to download pictures.The CDM 9155GPX
satisfies the FCC mandates for E911 and we expect this new technology to enhance our performance during
fiscal 2002 as carriers move to fulfill the requirements for E911 capability in their user base.
For AEC, we will continue to build on the strong sales in the mobile video and consumer categories as well as
entering two new markets—satellite radio and flat screen TV for the home. In addition, we plan to expand this
business through acquisition and to that end, have purchased the assets of Code-Alarm, a security company
with strong OE ties, and formed Code Systems, Inc.
Other AEC products scheduled for introduction this year will include a self-contained DVD rear seat entertain-
ment system, satellite radio, a vehicle tracking system, a first-to-market GPS-7 mile two-way radio and home
theater systems utilizing new flat screen technology.
We expect growth to be slow in the first half of fiscal 2002 as a result of the combination of an unsettled eco-
nomic outlook and new product introductions. However, by the second half, the results of multiple interest rate
cuts and virtually no inflation combined with increased government spending, lower energy costs and the full
impact of the 2001 tax cut, should strengthen the overall economic environment.
As a company we continue to address operating and supply cost cutting initiatives to position us successfully
for the introduction of new technologies.We are committed to increasing brand recognition and will continue to
aggressively support the Audiovox brand. Baring unforeseen economic developments, we anticipate a return to
historical growth patterns. As always, every employee of this corporation remains committed to maximizing
profits and increasing shareholder value.
Sincerely,
John J. Shalam
Chairman, President and CEO
03 Audiovox 2001 Annual Report