Tuesday, October 22

Voxx Nets More Back Seat Deals

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Couples in parked cars aren’t the only ones seeing action these days in the back seat of automobiles.

Voxx International narrowed its second quarter loss and said it has deals to install more equipment in the back seats of cars to help drive its sales going forward.

The Hauppauge-based company cut its second quarter loss to $6 million from  $20.8 million a year ago, when it took nearly $10 million in write downs of brand value.

Voxx International said net sales declined to $90.2 million from $108.9 million, in part due to some sales of operations.

CEO Pat Lavelle said the company still faces “some near-term headwinds” in the automotive industry, but added that there are some good signs.

Voxx has deals with car makers

Voxx  International has deals with original equipment manufacturers.

Lavelle said Voxx International was awarded work by car companies for “rear-seat entertainment programs which will create incremental business beginning in late fiscal 2021 and significant volume in the years that follow.”

He didn’t elaborate on which brands, but the company has done work for Fiat Chrysler Automobiles, Ford, General Motors, Hyundai, KIA, Mazda, Nissan, Subaru, and Toyota and others.

“With over 40 engineers on staff, we are committed to developing next-generation technologies that bridge the gap between content, devices and connectivity,” the company said on its website.

Net sales for the automotive electronics segment fell to $26.8 million from $40 million, although the company attributed that in part to delays in launching certain models.

“Overall, operating losses declined through the first half of the year,” Lavelle said. “We expect to be profitable in the second half of the year; and our balance sheet remains very strong.”

The company also said it shifted manufacturing of some products, amid concerns over tariffs, in its automotive and other businesses.

“To help offset the impact of tariffs, production of certain products was relocated to other countries,” the company said in its earnings report, although it didn’t indicate exactly which products were affected or give more details about the moves.


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