Audiovox to Buy Recoton Assets, Restates Results June 4, 2003 -- Audiovox Corp. said on Tuesday it won permission from a bankruptcy court to purchase the audio assets of Recoton Corp. for $40 million, adding the Jensen and Advent brands to its consumer electronics stable. Audiovox, a maker of mobile phones as well as car alarms and MP3 players, said incorporating the new brands into its own existing ones will give it stronger marketing power to buyers of speakers and entertainment systems. "I expect this acquisition will create minimal financial pressure on our operation since our cash position combined with our credit facilities will more than cover the transaction," Audiovox Chairman John Shalam said in a statement. Earlier, Audiovox of Hauppauge, New York, said separately that it further tweaked its financial results for 2000, 2001, and 2002, reflecting an overstatement of $65,000 in its profit for the combined period. A week ago, the company said it had under-reported its profit for that period by $1 million, but it adjusted its numbers following the completion of its audit to account for additional expenses from the issuance of subsidiary shares. The company has now filed its annual report with the U.S. Securities & Exchange Commission, but it adjusted its numbers following the completion of its audit to account for additional expenses from the issuance of subsidiary shares. The company has now filed its annual report with the U.S. Security & Exchange Commission, but it still has not filed its quarterly financials for the quarter ending Feb. 23. It attributed the delay to matters raised in comment letters from the SEC. The company posted a fourth quarter loss of 69 cents a share against a year ago loss of 14 cents a share. Sales fell seven percent to $316.9 million from $341.2 million. Shares of Audiovox closed at $9.15, off cents, or about six percent, on Nasdaq. -Reuters
