Audiovox 2004 Annual Report Download - page 107

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2002, 2003 and 2004
(Dollars in thousands, except share and per share data)
purchase price of $13,100, subject to a working capital adjustment, plus
contingent debentures based on achievement of future revenue targets.
On February 25, 2005, the Company entered into a plan to discontinue
ownership of the Company's majority owned subsidiary, Audiovox Malaysia
("AVM") and sell its ownership to the current minority interest
shareholder. The Company has planned to discontinue ownership of AVM due to
increased competition from non−local Original Equipment Manufacturers and
deteriorating credit quality of local customers. As a result of the
intended sale of AVM, beginning in the quarter ended February 28, 2005, the
Company will include the results of AVM within discontinued operations in
accordance with SFAS 144 "Accounting for the Impairment or Disposal of
Long−Lived Assets".
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