Audiovox 2003 Annual Report Download - page 33

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(3) In fiscal 2001, the Company adopted the provisions of EITF Issue No. 00−10,
"Accounting for Shipping and Handling Fees and Costs", which requires the
Company to report all amounts billed to a customer related to shipping and
handling as revenue. The Company has reclassified such billed amounts,
which were previously netted in cost of sales, to net sales. Gross profit
has remained unchanged by this adoption. For purposes of comparability,
these reclassifications have been reflected retroactively for all periods
presented.
Item 7 − Management's Discussion and Analysis of Financial Condition and Results
of Operations
Forward−looking Statements
This Report on Form 10−K contains forward−looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Words such as "may,"
"believe," "estimate," "expect," "plan," "intend," "project," "anticipate,"
"continues," "could," "potential," "predict" and similar expressions may
identify forward− looking statements. The Company has based these
forward−looking statements on its current expectations and projections about
future events, activities or developments. The Company's actual results could
differ materially from those discussed in or implied by these forward−looking
statements. Forward−looking statements include statements relating to, among
other things:
o growth trends in the wireless, mobile and consumer electronic
businesses
o technological and market developments in the wireless, automotive,
mobile and consumer electronics businesses
o liquidity
o availability of key employees
o expansion into international markets
o the availability of new consumer electronic products
o the availability of new wireless products
These forward−looking statements are subject to numerous risks,
uncertainties and assumptions about the Company including, among other things:
o the ability to keep pace with technological advances
o impact of future selling prices on Company profitability and inventory
carrying value
o significant competition in the wireless, automotive, mobile and
consumer electronics businesses
o quality and consumer acceptance of newly introduced products
o the relationships with key suppliers
o the relationships with key customers
o possible increases in warranty expense
o changes in the Company's business operations
o the loss of key employees
o foreign currency risks
o political instability
o changes in U.S. federal, state and local and foreign laws
31