Klipsch purchase helps fuel Audiovox sales

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Audiovox Corp.’s purchase of high-end speaker maker Klipsch Group Inc. early this year seems to be paying off for the New York company.

Audiovox President and CEO Pat Lavelle, in announcing the company’s fiscal second-quarter earnings late Tuesday, credited the former Indianapolis firm with helping Audiovox report strong financials.

“Our international operations are performing well, despite weakness in some European countries, and our Klipsch acquisition is meeting plan with a lot of potential to grow in the years ahead,” Lavelle said in a prepared statement.

For the fiscal period ended Aug. 31, Audiovox reported profit of $3.4 million, or 15 cents per share, compared with $600,000, or 3 cents per share, for the same time frame in 2010.

Second-quarter revenue increased 22.5 percent, to $158.3 million.

Sales of electronics accounted for $126.7 million of Audiovox’s total quarterly revenue. The addition of Klipsch had a favorable impact on the division, the company said.

Audiovox paid $166 million in March to buy Klipsch, which became a subsidiary of the company and operates in Indianapolis as a stand-alone operation under the leadership of the previous management team.

Audiovox had sales of $573 million and Klipsch had sales of $169 million in the 12 months ended Nov. 30, the companies said.

Klipsch Group, founded in 1945 by Paul Klipsch, has 210 employees, including 130 in Indianapolis. Its brands include Jamo, Mirage, Energy and Athena.
 

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