HAUPPAUGE, N.Y.-Problems with Qualcomm Inc. CDMA chipsets and delays in carrier approvals of new handsets led to a disappointing first fiscal quarter for Audiovox Corp.
The company reported net sales for the quarter ended Feb. 28 of $191 million, compared with sales of $331 million for the same period last year.
Audiovox experienced a net loss of $3.9 million, or 18 cents per share, for the quarter, compared with a net gain of $2.6 million, or 12 cents per share, for first fiscal-quarter 2001.
“First quarter wireless sales were adversely effected by a delay in carrier approvals of our new 1X phones, which required software modifications to correct a chipset issue. These phones are now in the final stages of carrier testing and we expect approvals shortly,” said John Shalam, chairman, president and chief executive officer of Audiovox.
Philip Christopher, president and CEO of Audiovox Communications Corp., said the company expects the first half of fiscal 2002 to continue to be effected by the delay of the 1x product introduction, as well as by overall reduction in demand and intense price competition.
A recovery is expected however.
“Our new products, which center on 1x technology, will help us restore margins and profits during the latter six months of the year,” said Christopher.
