Audiovox results indicate strong SiriusXM sales

[Jon]

By Brandon Matthews
Audiovox (VOXX) reported mixed overall results, citing strength in Sirius XM (SIRI) Satellite Radio sales as a primary driver of its first quarter sales results. Audiovox’s first quarter results consist of sales data from March 1, 2009 through May 31, 2009. The following transcript is from Seeking Alpha:

Uncertainty in the new car market resulted in first quarter sales that were off roughly 20% compared to last year. We did experience an increase in Sirius XM satellite radio products but unfortunately it wasn’t enough to offset the overall weakness in the automotive market. We fully expect satellite radio to continue to be a sales driver this year and new product introductions with Qualcomm’s (QCOM) flow TV, mobile video with Sony (SNE) PlayStation built in both slated for fall launch, as well as our new custom mobile multimedia radio line all should help offset continued market weakness.
​

Audiovox issued forward looking statements which anticipate an increase in Satellite Radio sales as the year progresses stating “…we expect margins to average more to our normal 17.5% to 18% levels as sales of the consumer and satellite radio products increase as we move into the year.â€
Although Audiovox reported weak results partially attributed to General Motors (GMGMQ.PK), the overall drop of only 20% is better than expected, on auto sales that have been off much more significantly. When considering Audiovox’s results it is important to consider that March was a crossover month in that Sirius XM has already reported its first quarter results which ended in March. Sirius XM’s first quarter runs from January 1 through March 31. Subsequently Sirius XM will be reporting its second quarter results to include data from June 2009, which is excluded from Audiovox’s first quarter.
Despite the crossover, Sirius XM investors will be pleased to learn that Satellite Radio is again not only showing signs of life but also, signs of strength.


Audiovox Results Indicate Strong Sirius XM Sales -- Seeking Alpha

 

[Kryptonite]

This could be nice. This could be REAL nice.

 

[v1ru5]

Damn good news but like I've always said give it time because Satrad is the move now imagine if Sirius/XM would advertise.

 

[Supafly]

Sorry but I think the wrong portion is highlighted.

Uncertainty in the new car market resulted in first quarter sales that were off roughly 20% compared to last year.

There's a sly way of reading earnings projections. They're saying they're behind 20% YOY. It's going to get worse for Audiovox and Sirius.

 

[Vargas]

Sorry but I think the wrong portion is highlighted.



There's a sly way of reading earnings projections. They're saying they're behind 20% YOY. It's going to get worse for Audiovox and Sirius.

Unless I misread something, they're saying that even though they posted at 20 behind last year, that would have been far worse if not for the growth in the Sirius/XM market.

 

[DAB]

Unless I misread something, they're saying that even though they posted at 20 behind last year, that would have been far worse if not for the growth in the Sirius/XM market.

Yeah that is how I read what they are saying too.

You know there are those that choose to see things from a negative perspective and those that view things from a positive perspective.

 

[Jon]

That wasn't my highlight by the way. It was the articles.

 

[IdRatherBeSkiing]

Which receivers does Audiovox manufacture? Are they only OEM or do they do retail ones too? If they do retail, this could mean a rebirth in the retail market.

 

[Kryptonite]

Which receivers does Audiovox manufacture? Are they only OEM or do they do retail ones too? If they do retail, this could mean a rebirth in the retail market.

Audiovox:
audiovox sirius - Google Image Search

 

[Supafly]

That wasn't my highlight by the way. It was the articles.

Damn you're right Jon. I've never seen a story highlight what it wants you to believe.

FACT: AUDIOVOX IS DOWN 20%.

As a publically traded company they have only one allegiance and that's to the shareholders. Like AIG, Fannie Mae, and Wachovia bank they will tell you to ignore the negative and just think positive.

We did experience an increase in Sirius XM satellite radio products but unfortunately it wasn’t enough to offset the overall weakness in the automotive market. We fully expect satellite radio to continue to be a sales driver this year and new product introductions with Qualcomm’s (QCOM) flow TV, mobile video with Sony (SNE) PlayStation built in both slated for fall launch, as well as our new custom mobile multimedia radio line all should help offset continued market weakness.

I've highlighted the portions you should take seriously. Expectations, just like those of the current Government Motors' promises (9 million car sales likely vs. 10 million promised three weeks ago) are not actual sales.

It's over. I'm in a metropolitan area and the rents in the last two months have fallen 20% because people are moving in with their parents. My food and energy costs have gone up 19% and 6% respectively in the last two years. We are in a hyperdeflationary spiral that has destroyed the best of the best. Sirius dosen't stand a chance.

 

[IdRatherBeSkiing]

Damn you're right Jon. I've never seen a story highlight what it wants you to believe.

FACT: AUDIOVOX IS DOWN 20%.

As a publically traded company they have only one allegiance and that's to the shareholders. Like AIG, Fannie Mae, and Wachovia bank they will tell you to ignore the negative and just think positive.



I've highlighted the portions you should take seriously. Expectations, just like those of the current Government Motors' promises (9 million car sales likely vs. 10 million promised three weeks ago) are not actual sales.

It's over. I'm in a metropolitan area and the rents in the last two months have fallen 20% because people are moving in with their parents. My food and energy costs have gone up 19% and 6% respectively in the last two years. We are in a hyperdeflationary spiral that has destroyed the best of the best. Sirius dosen't stand a chance.

Well, Mr. Little, you certainly are a pessimist. I think given that as you say the overall company sales tanked by 20% satrad was one of the bright spots that improved performance. And what goes down must come up. Its just a matter of companies and people being smart enough to ride it out.

 

[DAB]

It's over. I'm in a metropolitan area and the rents in the last two months have fallen 20% because people are moving in with their parents. My food and energy costs have gone up 19% and 6% respectively in the last two years. We are in a hyperdeflationary spiral that has destroyed the best of the best. Sirius dosen't stand a chance.

There is no doubt the economy in many areas is horrible, but this is simply not the case every where. So to make the assumption that because your area is really bad means that every area is bad and therefore Sirius doesn't stand a chance is just not true.

I know here in La while our economy has certainly been impacted, for the most part we are holding our own. Our unemployment has been 5% while the rest of the nation has been knocking on 10%. In the particular area I live we have mostly a service industry economy and things are actually pretty decent considering the rest of the country. No place is totally without some sort of impact.

None the less, I think given this economy folks will look around an weigh their options. Decide which entertainment options give them to best bang for the buck. There is no doubt that Sat Radio at $15 bucks a month would be hard to beat and one could easy adjust to pay for it when one less meal out etc.

So, I strongly disagree that sat radio is doomed and in fact think they have held their own thus far. They are working on government contracts, airlines, used cars now to roll out sat radio. I see very little chance of sat radio tanking if Sirius will take advantage of some major opportunities that are available to them.

 

[Kryptonite]

So, I strongly disagree that sat radio is doomed and in fact think they have held their own thus far. They are working on government contracts, airlines, used cars now to roll out sat radio. I see very little chance of sat radio tanking if Sirius will take advantage of some major opportunities that are available to them.

The interesting thing is, up until last year (with the big payment looming), you almost never heard how Sirius was doomed. I remember asking someone about in 2004 and they said it was the greatest thing ever, etc.

The companies seemed to be doing ok with a combined 5-6 million subs. If they got their finances in order, they could easily survive with 10 million subs. (I'm not saying they could afford to lose that many subs, though.)

 

[TSS Taylor]

Which receivers does Audiovox manufacture? Are they only OEM or do they do retail ones too? If they do retail, this could mean a rebirth in the retail market.

Audiovox makes all of the Terk Antennas, the XM Direct Kits, the Audiovox XM Radios like the Xpress Lines.

Then for SIRIUS the DISTRIBUTE (not make) the SIRIUS Radios, Kits, and Accessories.

 

[HecticArt]

Damn you're right Jon. I've never seen a story highlight what it wants you to believe.

FACT: AUDIOVOX IS DOWN 20%.

As a publically traded company they have only one allegiance and that's to the shareholders. Like AIG, Fannie Mae, and Wachovia bank they will tell you to ignore the negative and just think positive.



I've highlighted the portions you should take seriously. Expectations, just like those of the current Government Motors' promises (9 million car sales likely vs. 10 million promised three weeks ago) are not actual sales.

It's over. I'm in a metropolitan area and the rents in the last two months have fallen 20% because people are moving in with their parents. My food and energy costs have gone up 19% and 6% respectively in the last two years. We are in a hyperdeflationary spiral that has destroyed the best of the best. Sirius dosen't stand a chance.

Just about everybody is down at least 20% these days. For them to see growth anywhere is encouraging. Growth in SIRI is good for us as subscribers. There has been a lot of speculation that with the economy being what it is, the luxury of sat rad would cause a greater decline. This is just a barometer reading that there is still life in satellite.