10.10.2008 — Audiovox is reporting a $2.3 million net loss for its fiscal second quarter ended August 31, 2008.

The company says it experienced a $3.7 million net loss for the same period in 2007. Net sales for the quarter were $147.2 million compared to $148.3 million in fiscal Q2 last year.

"Our results this quarter and throughout the first half of the year are reflective of a deteriorating global economy, as consumer confidence continues to suffer, particularly in the U.S.," says Audiovox president and CEO Patrick Lavelle.

"Our sales and margins have been impacted by a decline in consumer spending and lower automotive sales. As a result, we have taken aggressive steps to better align our operations beyond what was previously forecasted. Price increases instituted in the second quarter and recent overhead reductions should position us for a profitable second half of the year."

The fiscal second quarter report says gross margins were down to 17 percent from 19.2 percent last year. Audiovox also says accessories sales were $35.5 million, a 13.4-percent decrease from $41 million for the same period in 2007.

Electronics sales were up 4.1 percent to $111.7 million. Audiovox attributes the increase to sales from the RCA A/V operations and increases in the company's presence in Germany, Mexico and Venezuela.

"Economic forces will continue to hinder our growth and ability to generate the types of returns we believed we were capable of delivering following last year's acquisitions," Lavelle adds.

"However, I am encouraged by our presence at retail, which is the strongest in our company's history, and we have improved our competitive position in many of our primary market categories."