Audiovox 2004 Annual Report Download - page 30

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presented in thousands.
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.
Business Overview and Strategy
The Company through its four wholly−owned subsidiaries: Audiovox
Electronics Corporation, American Radio Corp., Code Systems, Inc. and Audiovox
German Holdings GmbH and three majority− owned subsidiaries: Audiovox
Communications (Malaysia) Sdn. Bhd., Audiovox Holdings (M) Sdn. Bhd. and
Audiovox Venezuela, C.A. markets its products under the Audiovox(R) brand name
and other brand names, such as Jensen(R), Prestige(R), Pursuit(R), Rampage(TM),
Code−Alarm(R), Car Link(R), Movies 2 Go(R), Magnate(R), Mac Audio(R), Heco(R),
Acoustic Research(R), Advent(R), and Phase Linear, as well as private labels
through a large and diverse distribution network both domestically and
internationally. The Administrative Group consists of treasury, legal, human
resources, management information systems and corporate accounting services that
are provided to the Electronics Group. The Company reclassified Cellular results
from continuing operations and now reflects Cellular results as a discontinued
operation (refer to divestiture discussion below).
On January 4, 2005, the Company's wholly−owned subsidiary, Audiovox
Electronics Corporation, signed an asset purchase agreement to purchase certain
assets of Terk Technologies Corp. for a purchase price of $13,100, subject to a
working capital adjustment, plus contingent debentures based on achievement of
future revenue targets. This acquisition is expected to increase the Company's
market share for satellite radio products as well as accessories for HDTV
products.
The Company markets both domestically and internationally. Our products are
broken down into two major categories: Mobile Electronics and Consumer
Electronics .
Mobile Electronics products include:
o mobile video products, including overhead, headrest and portable
mobile video systems,
o autosound products including radios, speakers, amplifiers, CD
changers,
o satellite radios including plug and play models and direct connect
models,
o automotive security and remote start systems,
o navigation systems,
o rear observation systems, and
o automotive power accessories, including cruise control systems.
Consumer Electronics include:
o LCD and flat panel televisions,
o portable DVD players,
o home and portable stereos, and
o GMRS radios digital multi−media products such as personal video
recorders, MP3 players, MPG4 products.
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