Audiovox 2003 Annual Report Download - page 58

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Electronics Results
The following table sets forth for the fiscal years indicated certain
statements of income data for the Electronics Group expressed as a percentage of
net sales:
2001 (1) 2002
−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−−
Net sales:
Mobile electronics $ 157,706 53.0% $ 229,327 61.5%
Sound 57,456 19.3 56,281 15.1
Consumer electronics 80,380 27.0 86,472 23.2
Other 2,160 0.7 644 0.2
−−−−−−−−−− −−−−−−− −−−−−−−−−− −−−−−−−
Total net sales 297,702 100.0 372,724 100.0
Gross profit 49,088 16.5 60,037 16.1
Operating expenses
Selling 14,449 4.9 15,944 4.3
General and administrative 19,547 6.6 23,300 6.2
Warehousing and technical support 1,134 0.3 1,137 0.3
−−−−−−−−−− −−−−−−− −−−−−−−−−− −−−−−−−
Total operating expenses 35,130 11.8 40,381 10.8
−−−−−−−−−− −−−−−−− −−−−−−−−−− −−−−−−−
Operating income 13,958 4.7 19,656 5.3
Other expense (178) (0.1) (1,927) (0.5)
−−−−−−−−−− −−−−−−− −−−−−−−−−− −−−−−−−
Pre−tax income $ 13,780 4.6% $ 17,729 4.8%
========== ======= ========== ======
(1) See Note (2) of Notes to Consolidated Financial Statements.
Net Sales
Net sales were $372,724 in fiscal 2002, a 25.2% increase from net sales of
$297,702 in fiscal 2001. Mobile and consumer electronics' sales increased over
last year, partially offset by a decrease in Sound and other. Mobile electronics
increased $71,621 (45.4%) during 2002 from 2001. Sales of Mobile Video within
the Mobile Electronics category increased over 59% in fiscal 2002 from fiscal
2001 as a result of the introduction of new video digital product, satellite
radio and navigation products. Consumer Electronics increased $6,092 (7.6%) to
$86,472 in fiscal 2002 from $80,380 in fiscal 2001, primarily in sales of
video−in−a−bag and portable DVD players. These increases were partially offset
by a decrease in the sound category, particularly AV and Prestige(R) audio
lines. Given change in the marketplace, fully−featured sound systems are being
incorporated into vehicles at the factory rather than being sold in the
aftermarket. This declining trend in sound systems is expected to continue
except in the satellite radio product line.
Sales incentives expense increased $2,190 (net of reversals) due to an
increase in sales as compared to the prior year in the consumer goods category,
56