Audiovox 2002 Annual Report Download - page 5

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During the fiscal year 2002, we were pleased to conclude negotiations with Toshiba, which resulted in a 20% increase in their
investment in our wireless subsidiary. As a result, ACC has strengthened its relationship with a premier technology partner that
should help us as the new exciting 3G products materialize.
Audiovox Electronics Corp. (AEC) provided the bright spot of our 2002 fiscal year performance. In spite of the continuing soft
economy our electronics subsidiary, AEC reported growth of 25% with sales of our mobile video and consumer products leading
the way. In particular, sales of our portable DVDs have been strong and I anticipate the consumer category, marked by our
entrance into flat panel products and new DVDs to be major contributors to our 2003 performance.
I am pleased with our relationships with mass merchants, retailers and OEM’s as well as the marketing partnerships we are
developing with strong consumer brands, such as Disney, Hertz and most recently Eddie Bauer. During fiscal 2002, we acquired
the assets of Code Alarm, Inc., a premier manufacturer of vehicle security products, which will help increase market share in
security where we are already a dominant factor. In all, 2002 was our electronics subsidiary’s best year in terms of product
demand, sales and profits and while the overall economy remains a concern, at this moment we believe 2003 will continue
the upward trend.
Despite the current challenging economic environment, Audiovox Corporation has sound fundamentals and a strong balance
sheet and we continue to develop new products with high levels of consumer acceptance. We intend to use this strength
to grow this company both through new products and potential acquisitions. We remain committed to improving shareholder
value. Our company has faced adversity before and despite difficult times has grown, diversified and expanded. We will remain
focused on growing this company by conquering the challenges of today as we plan for a strong tomorrow.
Sincerely,
John J. Shalam
Chairman and Chief Executive Officer
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