Audiovox expects to close this month on $40 million purchase of R...
Audiovox expects to close this month on $40 million purchase of Recoton’s audio business that includes Acoustic Research and Jensen brands, it said in quarterly report filed with SEC. Audiovox, which purchased Recoton’s audio business out of bankruptcy, also…
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assumed $5 million in debt. Audiovox’s acquisition was part of break up of Recoton, which filed for bankruptcy in April. Recoton sold its accessories business to Thomson for about $60 million. Meanwhile, Audiovox reported 2nd- quarter net income fell to $2.1 million from $3.6 million year- ago despite gain in revenue to $301 million from $297.2 million. Gain in sales was spurred by mobile electronics, sales of which increased to $74.1 million from $57.8 million. Audiovox’s CE business posted increase in sales to $27.7 million from $19.1 million, while those from car sound systems fell to $9.9 million from $13.6 million. Wireless products, which includes cellular phones, posted decline in revenues to $185.1 million from $199.4 million year ago despite increase in average selling price to $161 from $135. Increase in selling price was driven by influx of color LCD-based cellular phones, Audiovox said. Unit sales dropped to 1.1 million from 1.4 million year-earlier. Overall, wireless products accounted for 61.6% of sales, down from 67.1% year-ago and were followed by mobile at 24.6%, up from 19.5%.