Chicago — Mobile navigation product sales did much to increase fourth-quarter revenue at Cobra Electronics, with the company’s three-month total rising 5.9 percent to $46.6 million, from $44 million in the year-ago period.
Net income at the communication and navigation products manufacturer more than doubled in the fourth quarter, ended Dec. 31, hitting $3.7 million, compared with a year-on-year $1.9 million.
The profit increase was driven by the increased sales as well as a variety of benefits and gains, said Cobra. Eliminating non-recurring events from the three months, as well as tax benefits, and Cobra would have reported an increase in net income to $2.3 million from $1.9 million, or 26.3 percent.
Gross margin in the fourth quarter was 28 percent, compared with 27.5 percent the prior year. Expenses increased to $9.8 million, or 21 percent of sales, from a year-earlier $9 million, or 20.6 percent of sales.
Fourth quarter results also reflect “continued strong performance in radar detection, as new retail distribution opportunities were realized, and Citizens Band radio, as targeted promotional activities increased Cobra’s share of this market,” said Jim Bazet, president/CEO.
These higher sales were offset, in part, by a decline in the two-way radio category, both domestically and internationally, as competitive pricing pressures intensified, continued Bazet.
For the 12 months, Cobra sales jumped 8.3 percent, reaching $133.1 million, from $122.9 million in the same period in 2004.
Net income for the year rose to $12 million, from $2.4 million the previous year, an increase of over 400 percent, driven by first and fourth quarter non-recurring events. Eliminating the non-recurring events, Cobra would have reported net income of $2.5 million for the 12 months, an increase of 6.8 percent from 2004.
“Cobra is forecasting that both revenue and net income in 2006 will exceed those of 2005, absent the non-recurring events from last year,” said Bazet. “We are also forecasting increases in both revenue and net income for the first quarter of 2006, again absent one-time events from last year,” he noted.