Audiovox 2008 Annual Report Download - page 9

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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 and expand our core business and distribution channels.
Refer to Note 3 “Business Acquisitions” of the Notes to Consolidated Financial Statements for additional information regarding the
aforementioned acquisitions.
Divestitures (Discontinued Operations)
On November 7, 2005, we completed the sale of our majority owned subsidiary, Audiovox Malaysia (“AVM”) to the then current
minority interest shareholder due to increased competition from non-local OEM’s and deteriorating credit quality of local customers.
On November 1, 2004, we completed the divestiture of our Cellular business (formerly known as "ACC", "Cellular" or "Wireless") to
UTStarcom, Inc. ("UTSI"). After paying outstanding domestic obligations, taxes and other costs associated with the divestiture, we
received net proceeds of approximately $144,053. We have utilized the net proceeds to invest in strategic and complementary
acquisitions and invest in our current operations.
These divestitures have been presented as discontinued operations. Refer to Note 2 “Discontinued Operations” of the Notes to
Consolidated Financial Statements for additional information regarding the aforementioned divestitures.
Strategy
Our objective is to grow our business by acquiring new brands, embracing new technologies, expanding product development and
applying this to a continued stream of new products that should increase gross margins and improve operating income. In addition,
we plan to continue to acquire synergistic companies that would allow us to leverage our overhead, penetrate new markets and expand
existing product categories through our business channels.
The key elements of our strategy are as follows:
Capitalize on the Audiovox® family of brands. We believe the "Audiovox®" family of brands, which includes Acoustic
Research®, Advent®, Ambico®, Car Link®, Chapman®, Code-Alarm®, Discwasher®, Energizer®, Heco®, Incaar®,
Jensen®, Mac Audio®, Magnat®, Movies2Go®, Oehlbach®, Phase Linear®, Prestige®, Pursuit®, RCA® (effective January
1, 2008), RCA Accessories®, Recoton®, Road Gear®, Spikemaster® and Terk®, is one of our greatest strengths and offers
us significant opportunity for increased market penetration. To further benefit from the Audiovox® family of brands, we
continue to invest and introduce new products using our brand names.
Capitalize on niche product and distribution opportunities in the electronics industry. We intend to use our extensive
distribution and supply networks to capitalize on niche product and distribution opportunities in the mobile, consumer and
accessory electronics categories.
Leverage our domestic and international distribution network. We believe our distribution network which includes power
retailers, mass merchandisers, distributors, car dealers and OEM’s will allow us to increase market penetration.
Grow our international presence. We continue to expand our international presence in Europe through Audiovox Germany
as well as Canada, Mexico and Hong Kong through our domestic operations. We continue to pursue additional business
opportunities through acquisitions as well as penetrate new market opportunities.
6
Source: AUDIOVOX CORP, 10-K, May 14, 2008