Audiovox 2010 Annual Report Download - page 5

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. Unless specifically
indicated otherwise, all amounts and percentages in our Form 10-K are exclusive of discontinued operations.
In February 2006, the Company changed its fiscal year end from November 30th to February 28th. The Company’s current fiscal year
began March 1, 2009 and ended February 28, 2010.
PART I
Item 1-Business
Audiovox Corporation (“Audiovox", “We", "Our", "Us" or “Company") is a leading international distributor in the accessory,
mobile and consumer electronics industries. With our most recent acquisition of Invision Automotive Systems, Inc. we have added
manufacturing capabilities to our business model. We conduct our business through eleven wholly-owned subsidiaries: American
Radio Corp., Audiovox Electronics Corporation (“AEC”), Audiovox Accessories Corp. (“AAC”), Audiovox Consumer Electronics,
Inc. (“ACE”), Audiovox German Holdings GmbH (“Audiovox Germany”), Audiovox Venezuela, C.A., Audiovox Canada Limited,
Entretenimiento Digital Mexico, S. de C.V. (“Audiovox Mexico”), Code Systems, Inc, Schwaiger GmbH (“Schwaiger”) and Invision
Automotive Systems, Inc. (“Invision”). We market our products under the Audiovox® brand name, other brand names and licensed
brands, such as Acoustic Research®, Advent®, Ambico®, Car Link®, Chapman®, Code-Alarm®, Discwasher®, Energizer®,
Heco®, IncaarTM, Invision®, Jensen®, Mac AudioTM, Magnat®, Movies2Go®, Oehlbach®, Phase Linear®, Prestige®, Pursuit®,
RCA®, RCA Accessories®, Recoton®, Road Gear®, Schwaiger®, Spikemaster® and Terk®, 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 (the "Electronics Group"), 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 Commission's ("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, [phone].
Acquisitions
We have recently acquired and continue to integrate the following acquisitions, discussed below, into our existing business
structure:
In February 2010, the Company’s new subsidiary, Invision Automotive Systems, Inc. completed the acquisition of the assets
of Invision Industries, Inc., a leading manufacturer of rear seat entertainment systems to OEM’s, ports and car dealers for a total cash
purchase price of $10,307, with all acquisition costs of $219 expensed as incurred in accordance with ASC 805. The purpose of this
acquisition was to increase our R&D capabilities, add a manufacturing facility to our business structure and augment our OE group.
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠