Chicago - Cobra Electronics reported
an operating profit, an improved net loss, and relatively flat consolidated
sales in the second quarter, ended June 30.
Cobra also announced that
longtime senior VP of marketing and sales Tony Mirabelli is retiring.
Cobra reported an operating profit
of $300,000 for the second quarter of 2010, compared with an operating loss of
$1.6 million for the second quarter of 2009.
Operating profit improved due to
an increase in the gross margin to 26.7 percent, from 24 percent in the prior
period, and a decrease in operating expenses as compared with the second
quarter of 2009 of more than $1.2 million.
Cobra had a net loss of $316,000
in the quarter, which is an improvement compared with a net loss of $9.9
million for the prior year's second quarter.
Consolidated sales declined by
$261,000, or 1 percent, with the Cobra segment reporting a decrease in net
sales of $1.2 million, or 4.9 percent. The company's performance products limited
(PPL) segment reported a sales increase of $893,000, or more than 34 percent.
The sales decrease for the Cobra
segment was seen primarily in Europe. Domestic sales experienced a decline in
two-way radios and radar detection, offset, in part, by growth in truck
navigation and marine radios.
The PPL sales increase was
attributable primarily to an increase in satellite navigation sales, as demand
for the Truckmate navigation product for professional drivers and the Ventura
navigation product for recreational vehicle drivers continues to grow, and
outdoor leisure products, including a third-party branded GPS unit and a
Snooper golf GPS unit.
In discussing the quarter, Jim
Bazet, Cobra's chairman/CEO, said in a statement, "Certain uncontrollable
variables -- namely, foreign exchange exposure and investment returns on the
cash surrender value of life insurance -- were negative in this most recent
quarter. Absent these factors, Cobra would have been profitable."
Concerning Mirabelli, who has
been with Cobra for 15 years, Bazet said, "Tony has been an integral part of
Cobra's history and a major force in the consumer electronics industry for more
than 25 years. All of us will miss him. We wish him and his entire family the
Sally Washlow, who was marketing
and product development VP, will replace Mirabelli. She joined Cobra more than
eight years ago and previously held sales, marketing, purchasing and product
development posts with Motorola and Zenith Electronics.
Chicago - Cobra Electronics reported an operating profit, an improved net loss, and relatively flat consolidated sales in the second quarter ended June 30.