Chicago - Cobra Electronics reported a net loss of $509,000 and lower net sales for the third quarter ended Sept. 30.
The net loss for the quarter compared with net income of $142,000 for the third quarter of last year.
Net sales were $27.4 million for the quarter, down from the prior year's $33.2 million.
The Performance Products Limited segment (PPL) realized an increase in sales from the third quarter of 2008 of 15.6 percent due to the demand for its truck and RV navigation products but this increase was insufficient to offset a decline of 20.2 percent for the Cobra segment as Citizens Band radio and radar-detection sales continued to suffer from the decline in consumer spending, Cobra said.
"Cobra's third quarter results reflect the effects of the continuing global recession, as distributors and retailers are closely managing working capital and consumers have curtailed spending in response to high unemployment and the decline in overall household wealth," said Jim Bazet, Cobra's chairman/CEO.
"In part, our third quarter results reflect the direction of our customers to defer shipments to the latest possible time that permits them to still have products in stock. As a result, we have seen a significant shift of business from the third quarter to the fourth quarter," Bizet observed.
However he noted, "We are beginning to see some signs of the economy bottoming out. The sales decline for the Cobra segment in the third quarter was materially less than the 24.1 percent decline experienced in the first two quarters of this year. Moreover, PPL generated an increase in sales due to the strength of their new product introductions - mobile navigation products tailored to the needs of the professional driver and the recreational vehicle owner."
Bizet revealed that Cobra has "executed an agreement with a major manufacturer of mobile phones and mobile navigation products to include the AURA database in their North American and European navigation products that will be released early next year. This is a significant step in our plan to make AURA the preeminent provider of photo-enforcement alerts globally and is expected to contribute to revenues and earnings in the second half of 2010."
In discussing the outlook for the balance of 2009, Bazet said, "Cobra anticipates a strong fourth quarter for both the Cobra and PPL segments. Revenues are expected to increase from the prior year and the company is expected to be profitable. We are continuing to address all opportunities to contain expenses in light of reduced consumer spending."