ORLANDO - VOXX International Corporation (NASDAQ:VOXX), known for its automotive and consumer technologies, today announced a change in its leadership structure. Ari M. Shalam has been named Chairman of the Board, succeeding John J. Shalam, who will now serve as Chairman Emeritus. Beat Kahli retains his role as Vice Chairman.
The leadership transition occurs as VOXX continues to navigate market challenges and implement a transformation strategy aimed at streamlining operations and returning the company to profitability. This includes the recent sale of certain domestic accessory assets as part of its restructuring efforts.
Ari M. Shalam, reflecting on his new role, expressed honor in continuing his father's legacy and emphasized the commitment to VOXX's stakeholders. John J. Shalam, with a tenure marked by both growth and economic adversity, expressed confidence in the company's future under the new leadership.
The company, which has built a reputation over decades with about 35 trusted brands, operates globally and serves a variety of markets, including in-vehicle entertainment and automotive security. VOXX has established itself as a significant player in the automotive electronics and consumer electronics industries.
This announcement is based on a press release statement from VOXX International Corporation. The company's forward-looking statements are subject to risks and uncertainties, including those detailed in its SEC filings, which may impact its actual future performance.
In other recent news, VOXX International Corporation has experienced key changes and strategic shifts. Shareholders approved several crucial proposals, including the election of seven board members, the 2024 Equity Incentive Plan, and the ratification of Grant Thornton LLP as the independent auditor for the upcoming fiscal year.
VOXX also reported a decline in sales of 18% year-over-year to $91.7 million in its fiscal 2025 first-quarter results, largely due to a decrease in automotive OEM sales.
Despite this, the company has taken steps to improve margins and reduce expenses, with a goal of returning to profitability within the current fiscal year. Gross margins have shown improvement to 27.7%, primarily in the Premium Audio and Automotive segments.
VOXX is working with Accordion to evaluate restructuring and optimize operations and supply chain management, which includes implementing an Oracle (NYSE:ORCL) Fusion ERP upgrade to improve automation and customer experience.
These recent developments underscore VOXX's determination to navigate through a challenging market by focusing on operational efficiency and profitability. The company's strategic initiatives, including cost reductions and investments in technology, are set to drive its return to profitability.
InvestingPro Insights
As VOXX International Corporation (NASDAQ:VOXX) embarks on a new chapter with its leadership changes and ongoing transformation strategy, investors and stakeholders are closely monitoring the company's financial health and market performance. Here are some key insights based on real-time data from InvestingPro:
InvestingPro Data:
- The company's market capitalization stands at $57.32 million, reflecting the size and scale of the business in the current market.
- VOXX is trading at a low Price / Book multiple of 0.2 as of the last twelve months, which could indicate that the company's assets are potentially undervalued by the market.
- Revenue has seen a decline of 13.26% over the last twelve months, highlighting the challenges VOXX faces in generating sales growth amidst market headwinds.
InvestingPro Tips:
- VOXX operates with a significant debt burden, which is an essential factor to consider as it may affect the company's financial flexibility and future investment capabilities.
- Management's aggressive share buyback strategy suggests a belief in the company's intrinsic value and a commitment to returning value to shareholders, even as analysts do not anticipate the company will be profitable this year.
These insights and more can be found on InvestingPro, where a total of 15 additional InvestingPro Tips are available for VOXX, offering a comprehensive analysis for investors looking to make informed decisions. The InvestingPro product, including these tips, can be accessed at https://www.investing.com/pro/VOXX.
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