Audiovox Warns of Fourth-Quarter Earnings Shortfall

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Audiovox

(VOXX) - Get Report

projected a fourth-quarter earnings shortfall and said it has decided to withdraw from the analog business, as component shortages related to GSM and TDMA have hurts its target unit sales.

The company, which is based in Hauppauge, N.Y., will take a reduction in the carrying value of its remaining analog inventories. Audiovox expects fourth-quarter earnings, prior to the analog inventory cost reduction, of 44 cents to 47 cents a share, compared with 56 cents a share recorded in the year-ago period.

Wall Street expects the company to earn 67 cents a share for the quarter, according to a

First Call/Thomson Financial

survey of two analysts.

The company, which markets wireless handsets, auto sound, vehicle security and other products, forecast fourth-quarter revenue of $485 million to $520 million, with cellular unit sales totaling 2.4 million to 2.7 million.

For the year, the company projected that revenue will increase 42% to $1.7 billion from $1.2 billion a year ago. The company expects full-year earnings of $1.43 to $1.46 a share, excluding charges, compared with $1.39 a year ago. Analysts expect earnings of $1.61.

The company expects unit sales for the full year to come in between 8.7 million and 8.9 million, up 43% from fiscal 1999.

Audiovox also projected fiscal 2001 sales of $1.8 billion to $1.9 billion and earnings of $1.65 to $1.70 a share.