VOXX International Corporation (formerly Audiovox) works to be the one-stop-shop for electronics. It sells consumer electronics for communications, mobile, and home use and acts as an original equipment manufacturer (OEM) for car makers. Its products include automotive security devices, digital picture frames, HD TV antennae, stereo and speaker systems, portable DVD players, two-way radios, and universal remotes. They are marketed under such names as Acoustic Research, Advent, Audiovox, Code-Alarm, Energizer, Invision, Jensen, Mac Audio, Schwaiger, and Terk. VOXX's distribution network comprises retailers, distributors, car dealers, and other OEMs. Founded by John Shalam in 1960, VOXX went public in 1987.
As an electronics maker and OEM, VOXX relies on consumer spending and vehicle sales. The US, which comprises its largest market, has struggled through the down economy with stalled car sales and concerned consumers. While revenues have improved slightly, VOXX's top line took a hit in recent years, spurring the company to exit the unprofitable and competitive LCD flat-panel TV and portable GPS markets.
The company uses contract manufacturers in Asia, which enables VOXX to respond quickly to changes in technology and tastes, as well as keep costs low.
Mergers and Acquisitions
Aiming to rev up its revenue, VOXX has focused on expanding its products portfolio. To that end, it acquired Germany's Car Communication Holding, a maker and supplier of Hirschmann-brand in-car communications and entertainment systems, for €85 million ($112 million) in 2012. Its customers include Audi, BMW, and Volkswagen, among others. Hirschmann became a wholly-owned subsidiary of VOXX. Previously, VOXX bought high-end audio gear maker Klipsch Group for $166 million in 2011. Klipsch is renowned for its branded speakers, sound systems, headphones, and other audio equipment. Klipsch is now a subsidiary of VOXX and operates as a stand-alone entity headquartered in Indiana.
Buying Klipsch helped VOXX boost its 2011 net sales some 26% as compared to 2010. Revenue rose across all business segments, but particularly in electronics sales (which include mobile and consumer electronics), with its 79% contribution to overall net sales that year. Launching new programs and logging sales spikes in domestic automotive sales helped to offset declines among its accessories business for products such as rechargeable batteries and surge protectors, as well as other chargers VOXX had decided to phase out. Thanks to Klipsch, net income increased 11% during the same reporting period.
Sales and Marketing
VOXX markets its products to a variety of customers, including regional chain stores, mass merchants, power retailers, specialty and Internet retailers, new car dealers, distributors, the US military, cinema operators, and vehicle equipment manufacturers. VOXX's five largest customers generated some 30% of its 2011 sales and 36% in 2010. Its OEM customers, which include Ford Motor Company, General Motors, Kia, Porsche, Subaru, and Toyota, bring in about 10% of sales.
John J. Shalam owns about 18% of VOXX's shares; Kahn Brothers LLC holds another 10% stake.