The international manufacturer and distributor of automotive products and consumer technologies VOXX International Corporation [NASDAQ: VOXX] yesterday announced its financial results for the fiscal year 2021 second quarter in the year ended August 31, 2020.
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The President and Chief Executive Officer, Pat Lavelle, said that the company has had a promising second quarter in both sales and profits. The future he said looks promising. In terms of sales, audio product sales have been growing and are expected to continue with the same trend following the company’s expansion of its distribution channels and their partnership with Pioneer and Onkyo. There are also a variety of new products that the company expects to introduce to the market. He further pointed out that VOXX aftermarket automotive business is growing steadily as a result of the new acquisitions both of which are doing well. In the same quarter, Lavelle notes that VOXX has been awarded an extra $30 million in new OEM business, raising the total of new business awarded to $400 million in just three quarters. With the new business contracts ranging between three to ten years, Lavelle projects that VOXX business could double in the next three years.
Further, VOXX has received a healthcare EyeLock program in which they already have some interested parties. The boss said that they are evaluating these options to see one that will bring maximum benefits to the company and the shareholders. Despite the challenges that the global pandemic has brought over many businesses, the VOXX balance sheet remains strong moving on to Fiscal 2021.
Financial Results
The fiscal year 2021 second quarter ended August 31, 2020, net sales were $128 million. This was an increase of 41.9% or about $37.8 million as compared to the previous year which was $90.2 million. All departments including consumer electronics, automotive, and biometrics showed significant improvement all contributing to the company’s total sales. Total operating costs in Fiscal 2019 were $29.4 million as compared to Fiscal 2020 which was $31.5 million, an improvement of $2.1 million, or about 6.7%. Selling expenses also increased by about 4.2% as a result of higher sales and related commissions. The company’s net profit Fiscal 2021 was at $7.3 million as compared to the net loss of $6.0 million, an improvement of about $13.3 million. Generally, the company made significant improvements and hopes to maintain this trend in the coming year as the business continues to grow.
