Chicago - Cobra Electronics reported a net profit and higher sales in the second quarter.
Net income was $517,000 in second quarter compared to a net loss of $364,000 for the second quarter of 2010. In addition, operating income increased to $951,000 for the current quarter from $252,000 in the same quarter last year, Cobra said.
This substantial improvement reflected an increase in net sales from $25.7 million to $28.9 million and an increase in gross margin to 28.4 percent from 26.5 percent in the prior period.
Consolidated sales increased by nearly $3.2 million, or 12.3 percent, with the Cobra segment reporting an increase in net sales of $2.6 million, or 11.7 percent, and the Performance Products Limited (PPL) segment reporting an increase of $550,000, more than 15.7 percent.
The sales increase for the Cobra segment resulted from higher domestic sales of CB radios, two-way radios and truck navigation products, as well as higher European sales. The increases in domestic CB radio and truck navigation sales reflected continued strong sales of the company's recently introduced 29 LX and 5550 PRO models while the increase in domestic two-way radio sales resulted mainly from increased sales to a major retailer, Cobra said.
"We are pleased to report to our shareholders the substantially improved operating performance over the same quarter last year, particularly the increase in sales, which was a result of the success of our new products and the marketing support behind them," said Jim Bazet, Cobra's chairman/CEO.
Cobra also reported that Robert P. Rohleder, a member of the its board and chairman of its audit committee, passed away after a short illness.
Bazet commented, "Bob served as a member of our board since February 2005 and we will miss his knowledge of our company and industry along with his likable personality."
William P. Carmichael, a current member of Cobra's audit committee, will become the committee's chairman.