Audiovox 2010 Annual Report Download - page 8

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Pursue strategic and complementary acquisitions. 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 existing business distribution.
Continue to outsource manufacturing to increase operating leverage. A key component of our business strategy is
outsourcing the manufacturing of the majority of our products, which allows us to deliver the latest technological advances
without the fixed costs associated with manufacturing.
Monitor operating expenses. We maintain continuous focus on evaluating the current business structure in order to create
operating efficiencies, including investments in management information systems, with the primary goal of increasing
operating income.
Industry
We participate in selected product categories in the mobile, consumer and accessory electronics markets. The mobile and
consumer electronics and accessory industries are large and diverse and encompass a broad range of products. This industry offers the
ability to specialize in niche product markets. The introduction of new products and technological advancements are the major growth
drivers in the electronics industry. Based on this, we continue to introduce new products across all product lines, with an increased
focus on niche product offerings.
Products
The Company currently reports sales data for the following two product categories:
Electronics products include:
mobile multi-media video products, including in-dash, overhead, headrest and portable mobile video systems,
autosound products including radios, speakers, amplifiers and CD changers,
satellite radios including plug and play models and direct connect models,
automotive security and remote start systems,
automotive power accessories,
rear observation and collision avoidance systems,
home and portable stereos,
digital multi-media products such as personal video recorders and MP3 products,
camcorders,
clock-radios,
digital voice recorders,
home speaker systems,
portable DVD players,
digital picture frames, and
e-readers.
Accessories products include:
High-Definition Television (“HDTV”) antennas,
Wireless Fidelity (“WiFi”) antennas,
High-Definition Multimedia Interface (“HDMI”) accessories,
home electronic accessories such as cabling,
other connectivity products,
power cords,
performance enhancing electronics,
TV universal remotes,
flat panel TV mounting systems,
iPod specialized products,
wireless headphones,
rechargeable battery backups (UPS) for camcorders, cordless phones and portable video (DVD) batteries and
accessories,
power supply systems,
electronic equipment cleaning products, and
set-top boxes.
We believe our product groups have expanding market opportunities with certain levels of volatility related to domestic and
international markets, new car sales, increased competition by manufacturers, private labels, technological advancements,
discretionary consumer spending and general economic conditions. Also, all of our products are subject to price fluctuations which
could affect the carrying value of inventories and gross margins in the future.
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠