VOXX International Corporation Reports its Fiscal 2024 2nd Quarter Financial Results.

ORLANDO, Fla: VOXX International Corporation (NASDAQ: VOXX), a leading manufacturer and distributor of automotive and consumer technologies for the global markets, today announced its financial results for its Fiscal 2024 second quarter ended August 31, 2023.

Commenting on the Company's results and business outlook, Pat Lavelle, Chief Executive Officer stated, "We saw modest improvements in our business sequentially and expect to generate year-over-year growth and profitability in the second half of our Fiscal year. The extent of our growth will be very much dependent on the state of the car markets, especially now with the UAW strike, as well as consumer spending during the upcoming holiday selling season. To combat market softness, we took significant steps during the quarter to restructure our business and have reduced our operating expenses significantly. We expect restructuring and realignment initiatives to also generate higher gross margins in the second half, with more improvements planned as we move into next year. New products and programs across each of our business segments are driving our optimism, though we remain very conservative in our outlook given the state of the global economies."

Fiscal 2024 and Fiscal 2023 Second Quarter Comparisons

Net sales in the Fiscal 2024 second quarter ended August 31, 2023, were $113.6 million as compared to $125.7 million in the Fiscal 2023 second quarter ended August 31, 2022, a decrease of $12.1 million or 9.6%. On a sequential basis as compared to the Fiscal 2024 first quarter, net sales increased by $1.7 million or 1.5%.

Automotive Electronics segment net sales in the Fiscal 2024 second quarter were $35.4 million as compared to $37.2 million in the comparable year-ago period, a decrease of $1.8 million or 4.8%. For the same comparable periods, OEM product sales were $16.3 million as compared to $15.2 million and aftermarket product sales were $19.2 million as compared to $22.0 million. Higher OEM product sales were driven by the fulfillment of backorders as materials became available, offset by lower sales of aftermarket products, primarily in the security and rear-seat entertainment categories.

Consumer Electronics segment net sales in the Fiscal 2024 second quarter were $78.0 million as compared to $88.0 million in the comparable year-ago period, a decrease of $10.0 million or 11.3%. For the same comparable periods, Premium Audio product sales were $53.2 million as comparted to $69.2 million and other consumer electronics ("CE") product sales were $24.8 million as compared to $18.8 million. The decline in Premium Audio product sales was primarily related to ongoing softness in the economy and a decrease in consumer spending, as well as higher sales in the prior year period related to new product launches. The increase in other CE product sales was primarily driven by higher European accessory sales related to the Company's new balcony solar power products.

Biometrics segment net sales in the Fiscal 2024 second quarter were $0.2 million as compared to $0.3 million in the comparable year-ago period, with the decline primarily related to lower licenses for the comparable periods and ongoing product shortages.

The gross margin in the Fiscal 2024 second quarter was 25.2% as compared to 23.3% in the Fiscal 2023 second quarter, an increase of 190 basis points. Gross margin improved 60 basis points on a sequential basis when compared to the Fiscal 2024 first quarter. For the same comparable year-ago periods...