About Voxx International Corporation
Through more than a dozen subsidiaries and some 30 brands, VOXX International makes and sells consumer, premium audio, and automobile electronics. Its products include HDTV and WiFi antennas, power cords, universal remotes, a plethora of speakers and music systems, auto security and remote start systems, and power lift gates. The company counts Acoustic Research, Audiovox, Car Link, Omega, Prestige, Rosen, and Schwaiger among its brands. VOXX markets its products to original equipment manufacturers (OEMs), as well as mass merchants, specialty retailers, distributors, and others. It generates nearly 90% of sales in the US.
VOXX operates through three segments: Consumer Accessories and Premium Audio, which each account for about 35% of total revenue, and Automotive, which accounts for about 30%.
The Consumer Accessories segment include remote controls, wireless and Bluetooth speakers, karaoke products, biometric security related products, personal sound amplifiers, smart-home security and safety products, infant and nursery products, and A/V connectivity products. The Premium Audio segment includes home theater systems, high-end loudspeakers, outdoor speakers, iPad/iPod and computer speakers, cinema speakers, flat panel speakers, Bluetooth speakers, soundbars, and headphones. The Automotive segment includes rear-seat entertainment devices, satellite radio products, remote start systems, aftermarket/OE-styled radios, car-link smartphone telematics applications, and collision avoidance systems.
VOXX generates nearly 90% of its total revenue from the US, with Germany accounting for most of the rest.
From its headquarters in New York, the company directs operations that span some 30 facilities in about a dozen US states (Arkansas, Florida, Georgia, Indiana, Michigan, Nevada, New Jersey, New York, Ohio, Texas, and Virginia), as well as Canada, China, France, Germany, Hong Kong, Mexico, the Netherlands, and Venezuela.
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 generate about a quarter of sales. Its OEM customers, which include
VOXX has seen revenue decline about 20% since fiscal 2014 amid increased competition and rapid changes in technology that have made high volume/low margin items such as camcorders, clock radios, and DVD players increasingly obsolete. Net income, however, has been steadily improving over that time.
In fiscal 2018 (ended February 2018) the company reported revenue of $507 million, down about 1% from the prior year. Minimal growth in the Premium Audio and Consumer Accessories segments was not enough to offset a more substantial decline in the Automotive segment as a result of a drop in satellite radio sales (which are increasingly included as a standard vehicle option) and the completion of programs with various automakers.
Net income jumped substantially in fiscal 2018 to $35 million as the company reported an income tax benefit of more than $17 million related to the 2017 Tax Act and net income from discontinued operations (Hirschmann Car Communication, sold in mid-2017) of nearly $35 million.
Cash at the end of fiscal 2018 was $4 million, a decrease of $4.6 million from the prior year. Cash from operations contributed nearly $14 million to the coffers, while investing activities used $4 million, mainly for capital expenditures. Financing activities used another $14 million for member distributions.
As an electronics maker and OEM, VOXX relies on consumer spending and vehicle sales. The US, which represents its largest market, has struggled in recent years with stalled car sales and concerned consumers. While revenues have improved slightly, VOXX's top line took a hit, spurring the company to exit the unprofitable and competitive LCD flat-panel TV and portable GPS markets.
Instead, VOXX is investing heavily in research and development, significantly increasing these expenditures from $400,000 in 2012 to $15.9 million in 2013 and $21.3 million in 2014. The move has enabled VOXX to build a pipeline of new products across all three of its business lines. As part of this focus, VOXX in 2014 invested $3 million in EyeLock, which specializes in iris-based identity authentication, to leverage the firm's North American and European distribution channels and its myris line.
In 2017 VOXX sold its Hirschmann Car Communication GmbH unit to TE Connectivity for about $166 million. VOXX had bought Hirschmann, which makes communications and infotainment equipment and antennas for the automotive market, for about $114 million in 2012. VOXX sold the unit rather than invest the amount of money deemed necessary for the unit's growth.
The company partners with others to boost revenue. In 2014 VOXX and Steelmate Automotive entered an exclusive distribution agreement through which Steelmate supplies VOXX Electronics items alongside the company's full line of collision avoidance and advanced automotive accessories.
2351 J Lawson Blvd
Orlando, FL 32824-4386
Phone: 1 (800) 645-7750
Employer Type: Publicly Owned
Stock Symbol: VOXX
Stock Exchange: , NASDAQ
President, CEO, and Director: Patrick M. Lavelle
Chairman: John J. Shalam
SVP and COO: Loriann Shelton
Employees (This Location): 330
Employees (All Locations): 912
West Chester, OH