Audiovox 2010 Annual Report Download - page 7

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In October 2009, Audiovox German Holdings GmbH completed the acquisition of certain assets of Schwaiger GmbH, a
German market leader in the consumer electronics, SAT and receiver technologies for a total net asset payment of $4,348, with
acquisition costs of $209 expensed as incurred. The purpose of this acquisition was to expand our European operations and increase
our presence in the European accessory market.
Prior to Fiscal 2010, the Company expanded its market presence by acquiring and fully integrating the following businesses:
In December 2007, the Company completed the acquisition of certain assets and liabilities of Thomson’s U.S., Canada,
Mexico, China and Hong Kong consumer electronics audio/video business, as well as the rights to the RCA brand for the audio/video
field of use. Contemporaneous with this transaction, the Company entered into a license agreement with Multimedia Device Ltd., a
Chinese manufacturer, to market certain product categories acquired.
In November 2007, AAC completed the acquisition of all of the outstanding stock of Technuity, Inc., an emerging leader in
the battery and power products industry and the exclusive licensee of the Energizer® brand in North America for rechargeable
batteries and battery packs for camcorders, cordless phones, digital cameras, DVD players and other power supply devices.
In August 2007, Audiovox Germany acquired certain assets of Incaar Limited, a U.K. business that specializes in rear seat
electronics systems.
In March 2007, Audiovox Germany acquired the stock of Oehlbach, a European market leader in the accessories business.
In January 2007, we acquired certain assets and liabilities of Thomson’s Americas consumer electronics accessory business
which included the rights to the RCA Accessories brand for consumer electronics accessories.
Refer to Note 2 “Business Acquisitions” of the Notes to Consolidated Financial Statements for additional information
regarding the Fiscal 2010 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. This divestiture has been presented as discontinued operations. Refer to Note 3 “Discontinued Operations” of the Notes to
Consolidated Financial Statements for additional information regarding the aforementioned divestiture.
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" portfolio of brands is one of our greatest strengths
and offers us significant opportunity for increased market penetration. To further benefit from the Audiovox portfolio of
brands, we continue to invest and introduce new products using our brand names, in addition to seeking opportunities to
license our products.
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 through our companies in Germany,
Canada, Mexico and Hong Kong. We also continue to export from our domestic operations in the United States. We will
pursue additional business opportunities through acquisition.
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Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠