Audiovox 2005 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 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

(14) Bliss−tel Initial Public Offering
On December 13, 2004, one of the Company's former equity investments,
Bliss−tel Public Company Limited ("Bliss−tel"), issued 230,000,000
shares on the SET (Security Exchange of Thailand) for an offering price
of 6.20 baht per share. Prior to the issuance of these shares, the
Company was a 20% shareholder in Bliss−tel and, subsequent to the
offering, the Company owns 30,000,000 shares (or approximately 13%) of
Bliss−tel's outstanding stock. In addition, on July 21, 2005, the
Company received 9,000,000 warrants ("the warrants") which may be
exercised beginning on September 29, 2006, and expire on July 17, 2012.
Each warrant is exercisable into one share of Bliss−tel common stock at
an exercise price of 8 baht per share. Beginning on September 1, 2005,
the Company accounted for the Bliss−tel investment as an
available−for−sale security in accordance with FASB Statement No. 115
"Accounting for Certain Investments in Debt and Equity Securities"
whereby the unrealized holding gains and losses on Bliss−tel stock and
warrants are included as a component of accumulated other comprehensive
income (loss) (Note 1(e)). The Company reclassified the Bliss−tel
investment to an available−for−sale security, on September 1, 2005, as
a result of a change in the Company's strategy regarding selling the
Bliss−tel stock as the Company was unable to find a buyer in the short
term.
Prior to September 1, 2005 and after the Bliss−tel offering, the Company
accounted for this investment as a trading security. Accordingly, the
Company recorded a net unrealized gain of $4,971 for the year ended
November 30, 2005, which is included in other income on the accompanying
statement of operations. This gain represents the initial value of the
Bliss−tel warrants and the change in value of the underlying stock and
warrant during the period, which the investment was classified as a trading
security.
(15) Financial and Product Information About Foreign and Domestic Operations
Net sales and long−lived assets by location for the years ended
November 30, 2003, 2004 and 2005 were as follows.
NET SALES LONG−LIVED ASSETS
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004 2005 2003 2004 2005
−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
$468,880 $486,780 $466,512 $ 55,256 $ 57,503 $ 75,893
United States
Venezuela 2,887 4,535 8,224 511 358 1,547
Europe 26,676 54,832 52,039 2,407 2,407 1,654
Other foreign countries 17,506 12,941 −
−−− −−−−−− −− −−−−−− −−−−−−−−−− −−−−−−−−−−− −−−−−−−−−− −
12,456 − −
−−−− −−−−−− − − − −−−− −−
Total $510,899 $563,653 $539,716 $ 58,174 $ 60,268 $ 79,094
======== ======== ======== ======== ======== ========
Net sales by product categories for each of the three years in the
period ended November 30, 2005 were as follows:
2003 2004 2005
−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−− −−−−−−−−−−−−−−−
$ 350,546 $ 403,196 $339,355
Mobile Electronics
Consumer Electronics 159,833 160,457 200,361
Other 520 −
−−−−−−−−− −−− −−−−−−−−−−−− −−−−−−−−−−− −
−
− − −−
Total net sales $ 510,899 $ 563,653 $ 539,716
========= ========= =========
F−44