Summary by Futu AI
VOXX International reported Q1 FY2025 net sales of $91.7M, down 18.1% YoY, while gross margins improved 310 basis points to 27.7%. Operating loss narrowed to $7.1M from $11.4M last year, with Adjusted EBITDA loss improving to $2.9M from $4.9M. The company reduced operating expenses by 16.6% through restructuring initiatives and headcount reductions.The Automotive segment saw a 27.9% decline to $27.7M due to lower OEM rear seat entertainment sales, while Consumer Electronics dropped 12.8% to $63.9M. Premium Audio product sales increased slightly to $48.4M driven by new product launches. The company is transitioning OEM production to Mexico and plans to complete the move by Q2 end.Management announced plans to reduce debt by approximately $45M through asset sales, including the Orlando facility sale expected in Q3. The company has engaged consulting firm Accordion to optimize operations and aims to cut overhead by another 5% in H2. Despite challenging market conditions, VOXX expects to return to profitability this fiscal year through continued cost reduction and operational improvements.
