Voxx EyeLock Investments, Other Losses Draw Ire, CEO Defense
Voxx CEO Pat Lavelle took heat on a fiscal Q4 earnings call Wednesday from investors angered over the company’s mounting losses, low stock price and pattern of burning cash on its EyeLock iris-authentication security technology venture that has yet to…
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yield a commercial product after years of trying. Several hammered Lavelle with questions about why Voxx doesn’t liquidate its real estate holdings and premium audio assets, which they said would fetch more than the company is worth as a going concern. A restructuring is nearly complete that included elimination of 9 percent of the workforce in the past year, said Lavelle. Operating losses widened 116 percent in the year ended Feb. 28 to $41.2 million. Revenue declined 12 percent to $446.8 million “Obviously, we’re not pleased with the past performance or the valuation of the company,” said Lavelle. “But we’ve not stood by idly as we continue to make the changes we believe will result in a stronger Voxx.” Losses will continue in Q1 and Q2, but that won’t be “the case thereafter,” he said. “I know this has been a long road,” said Lavelle. “It’s been equally frustrating for me personally as CEO. “Possibly doing a divestiture” is an idea that’s “on the table” and that the board “has discussed,” responded Lavelle to a question.