VOXX International Corp (NASDAQ:VOXX) Q1 2020 Earnings Conference Call - Final Transcript

Jul 11, 2019 • 10:00 am ET

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VOXX International Corp (NASDAQ:VOXX) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Patrick M. Lavelle

some of the things that are planned for them.

Analyst
Eric Paul Landry

Okay. Great. To me it looks like a fantastic product, I'm really excited to see how you're doing it. Now this is sort of kind of, a dumb question here, but is there any sort of IP protection on that case?

Executive
Patrick M. Lavelle

The -- No. No, there isn't. The only IP protection on the unit is the shape of the earplugs.

Analyst
Eric Paul Landry

Yeah. Right. And you're not nervous that there's going to be an issue in China with that?

Executive
Patrick M. Lavelle

Well, we fought counterfeit claims and counterfeit product over the years. It's a constant battle with the Klipsch brand, but it's going to exist. We're going to monitor the situation, and we will do our best to protect our position.

Analyst
Eric Paul Landry

Okay.

Executive
Patrick M. Lavelle

Just -- by the way, the $2.1 million pickup that we had on the expenses last year was the award of legal fees on the counterfeit claim that Klipsch had against the counterfeiters. So we are very active and very protective position of the Klipsch products.

Analyst
Eric Paul Landry

Okay. Real quick here, any comments on the initial selling for that T5 True Wireless?

Executive
Patrick M. Lavelle

We're out of stock.

Analyst
Eric Paul Landry

Okay. Lastly, the product recall in ASA, was that a one-timer or is that sort of an ongoing thing?

Executive
C. Michael Stoehr

Do we call an ASA?

Executive
Patrick M. Lavelle

That will -- they will be handling that over the course of this next fiscal year. So we can look forward to -- yeah, right. It's not a one-time effect for this quarter.

Analyst
Eric Paul Landry

Okay. So we're going to look forward to lower earnings for a year now in that thing?

Executive
Patrick M. Lavelle

That would offset some of the increases, but ASA has got some very positive things happening in other segments of their market that can offset it.

Analyst
Eric Paul Landry

All right. Thank you.

Operator
Operator

Thank you. (Operator Instructions). All right. And we have Thomas Kahn from Kahn Brothers. You may begin.

Analyst
Thomas Graham Kahn

Thomas Kahn, K-A-H-N, speaking.

Executive
Patrick M. Lavelle

Good Morning, Tom.

Analyst
Thomas Graham Kahn

John, this was a very, I would say, disappointing release and I've listened a long time, John. Our clients own maybe 17% of the company stock. And if you're going to listen to the release, the calls from the past, let's say three years is always some optimistic statements in the calls. And for some reason the optimism, John, never comes through. The way we look at it is, that's probably $7 a share of liquid assets and then some more in the way of net assets. So the compensation package irregardless of what a paid consultant says to you, kind of, doesn't make sense. I mean you have to hit $5 and there's $7 of cash in ASA liquid assets. I mean it's all wrong from my perspective. I mean the way these things should be done, John, if there were in shareholder interest, would be like stretch options. Very large options with a $10, $15, $20 strike price to align the shareholder interest with the management.

Now I remember that you said in a public meeting that our