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CAUTIONARY STATEMENT RELATING TO THE SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Annual Report on Form 10-K and the information incorporated by reference includes
‘‘forward-looking statements’’ within the meaning of section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. We intend those forward looking-statements to
be covered by the safe harbor provisions for forward-looking statements. All statements regarding our
expected financial position and operating results, our business strategy, our financing plans and the
outcome of any contingencies are forward-looking statements. Any such forward-looking statements
are based on current expectations, estimates, and projections about our industry and our business.
Words such as ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘seeks,’’ ‘‘estimates,’’ or
variations of those words and similar expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to risks and uncertainties that could cause actual
results to differ materially from those stated in or implied by any forward-looking statements. Factors
that could cause actual results to differ materially from forward-looking statements include, but are
not limited to, matters listed in Item 1A under ‘‘Risk Factors’’.
NOTE REGARDING DOLLAR AMOUNTS AND FISCAL YEAR END CHANGE
In this annual report, all dollar amounts are expressed in thousands, except for share prices and
per-share amounts.
In February 2006, the Company changed its fiscal year end from November 30
th
to February 28
th
.
The Company’s current fiscal year began March 1, 2006 and ended February 28, 2007.
PART I
Item 1 — Business
Audiovox Corporation (‘‘Audiovox’’, ‘‘We’’, ‘‘Our’’, ‘‘Us’’ or ‘‘Company’’) is a leading
international distributor and value added service provider in the accessory, mobile and consumer
electronics industries. We conduct our business through five wholly-owned subsidiaries: American
Radio Corp., Audiovox Electronics Corporation (‘‘AEC’’), Audiovox German Holdings GmbH
(‘‘Audiovox Germany’’), Audiovox Venezuela, C.A and Code Systems, Inc. (‘‘Code’’). We market our
products under the Audiovox
®
brand name and other brand names, such as Acoustic Research
®
,
Advent
®
, Ambico
®
, Car Link
®
, Chapman
®
, Code-Alarm
®
, Discwasher
®
, Heco
®
, Jensen
®
, Mac
Audio
®
, Magnate
®
, Movies 2 Go
®
, Phase Linear
®
, Prestige
®
, Pursuit
®
, RCA
®
, Recoton
®
, Road
Gear
®
and Spikemaster
®
, as well as private labels through a large domestic and international
distribution network. We also function as an OEM (‘‘Original Equipment Manufacturer’’) supplier to
several customers and presently have one reportable segment (‘‘Electronics’’), which is organized by
product category.
Audiovox was incorporated in Delaware on April 10, 1987, as successor to a business founded in
1960 by John J. Shalam, our Chairman and controlling stockholder. Our extensive distribution
network and long-standing industry relationships have allowed us to benefit from growing market
opportunities and emerging niches in the electronics business.
We make available financial information, news releases and other information on our web site at
www.audiovox.com. There is a direct link from the web site to the Securities and Exchange
Commissions (SEC) filings web site, where our annual report on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and any amendments to these reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge
as soon as reasonably practicable after we file such reports and amendments with, or furnish them to
the SEC. In addition, we have adopted a code of business conduct and ethics which is available free
of charge upon request. Any such request should be directed to the attention of: Chris Lis Johnson,
Company Secretary, 180 Marcus Boulevard, Hauppauge, New York 11788, (631) 231-7750.
Acquisitions
On March 5, 2007 (subsequent to year end), Audiovox German Holdings GmbH completed the
acquisition of OEHLBACH Kabel GmbH, a European market leader in the accessories field, for a
2