Audiovox 2006 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2006 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 120

  • 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
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2007
(Dollars in thousands, except share and per-share data)
A reconciliation between the denominators of the basic and diluted income (loss) per
common share is as follows:
Year
Ended
February 28,
2007
Three Months
Ended
February 28,
2006
Years ended
November 30,
2005 2004
Weighted-average number of common
shares outstanding (basic).............. 22,366,413 22,526,497 22,278,542 21,955,292
Effect of dilutive securities:
Stock options and stock warrants ....... 190,859 240,096 — 417,842
Weighted-average number of common and
potential common shares outstanding
(diluted)............................. 22,557,272 22,766,593 22,278,542 22,373,134
Stock options and stock warrants totaling 1,157,226, 1,028,000, 611,923 and 366,250 for the
year ended February 28, 2007, the three months ended February 28, 2006 and the years
ended November 30, 2005 and 2004, respectively, were not included in the net income
(loss) per common share calculation because the exercise price of these options and
warrants were greater than the average market price of common stock during the period or
these options and warrants were anti-dilutive due to losses during the respective periods.
r) Other Income (Loss)
Other income (loss) is comprised of the following:
Year
Ended
February 28,
2007
Three Months
Ended
February 28,
2006
Years ended
November 30,
2005 2004
CellStar impairment (Note 1 (e)) ......... $ — $ — $(1,758) $ —
Bliss-tel (Note 14) ...................... (178) — 4,971 —
Interest income......................... 6,218 1,108 3,813 795
Rental income.......................... 552 143 610 106
Other ................................. (339) 518 2,094 1,535
Total - Other, net ..................... $6,253 $1,769 $ 9,730 $2,436
s) Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
disposed of
Long-lived assets and certain identifiable intangibles are reviewed for impairment in
accordance with SFAS No. 144, ‘‘Accounting for the Impairment or Disposal of
Long-Lived Assets’’, whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of an asset to future
undiscounted net cash flows expected to be generated by the asset. Recoverability of assets
held for sale is measured by comparing the carrying amount of the assets to their estimated
fair market value. If such assets are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceed
the fair value of the assets.
F-20