Audiovox 2005 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2005 Audiovox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 111

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111

Increase market penetration by capitalizing on the Audiovox(R) family
of brands. We believe the "Audiovox(R)" family of brands, which
includes Pursuit(R), Jensen(R), Magnate(R), Mac Audio(R), Heco(R),
Acoustic Research(R) , Advent(R), Terk(R) and Phase Linear(R), is one
of our greatest strengths. To further benefit from the Audiovox(R)
brands, we continue to invest and introduce new products using our
brand names.
Pursue strategic and complementary acquisitions − We continue to
monitor economic and industry conditions in order to evaluate potential
synergistic business acquisitions that would allow us to leverage
overhead, penetrate new markets or expand our existing business
distribution.
Grow our international presence. We continue to expand our
international presence in Europe and we intend to expand our
international business through Audiovox Germany and will continue to
pursue additional business opportunities through acquisitions or the
introduction of products.
Continue to outsource manufacturing to increase operating leverage. A
key component of our business strategy is outsourcing the manufacturing
of our products, which allows us to deliver the latest technological
advances without the fixed costs associated with manufacturing.
Monitor operating expenses. We continuously focus our efforts on
evaluating the current business structure in order to create operating
efficiencies, including investments in management information systems,
with the primary goal of increasing operating income.
INDUSTRY
The mobile and consumer electronics industries are large and diverse and
encompass a broad range of products. The significant competitors in our
industries are Sony, RCA, Panasonic, JVC, Kenwood, Alpine, Directed Electronics
and Delphi. There are other large companies that specialize in niche products
such as speakers, amplifiers or security. We participate in selected markets
such as satellite radio, mobile video, portable DVD, digital multi−media,
vehicle security and flat panel TV's, as well as other selected consumer
electronics categories.
The introduction of new products and technological advancements are the
major growth drivers in the electronics industry. Currently, new products
include, but are not limited to, satellite radio, installed and portable DVD
mobile video systems, rear observation and collision avoidance systems, flat
panel TVs, hand held GPS, innovative home speaker systems and navigation systems
with real time traffic information and digital multi−media products.
PRODUCTS
Our electronic products consist of two major categories: Mobile Electronics
and Consumer Electronics.
Mobile electronics products include:
o mobile multi−media video products, including overhead, headrest and portable
mobile video systems,
o autosound products including radios, speakers,amplifiers and 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 and collision avoidance systems, and
o automotive power accessories, including cruise control systems.
6