Chicago – Cobra Electronics posted a reduced net loss
and higher sales in the first quarter ended March 31.
Its net loss for
the first quarter of 2011 fell $534,000, or 40.5 percent, to a seasonal
$783,000 compared with last year’s first quarter loss of $1.3 million.
Net sales for the
current quarter increased $1.4 million, or 6.4 percent, to $22.4 million from
$21.1 million for the prior year’s first quarter.
“We are pleased to
report to our shareholders greatly improved performance for the first quarter
as compared to last year,” said Jim Bazet, Cobra’s chairman/CEO. “This
performance continued the steady progress we made during 2010 to improve our
business by growing our top line and tightly managing our selling, general and
administrative expense. These efforts helped drive the improvement for the
reported sales increases over the same quarter in the prior year, with the
Cobra segment reporting an increase in sales of $1.2 million, or 6.6 percent,
and the Performance Products Limited segment reporting an increase of $202,000,
or 5.7 percent.
The sales increase
for the Cobra segment was driven by a 45.1 percent increase in domestic sales
of Citizens Band radios and a 34.3 percent increase in European sales,
consisting mainly of higher radar detector sales into Eastern Europe. Sales of
Citizens Band radios increased domestically as the improving economy boosted
truck freight shipments and, in turn, discretionary spending by professional
drivers at travel centers.
were strong sales of the newly introduced 29 LX, a model based on Cobra’s 29 LX
LE 50th Anniversary Limited Edition model sold in 2010. The PPL segment sales
increase was attributable primarily to higher satellite navigation sales,
driven by sales of new models of the Truckmate navigation units designed
specifically for professional drivers and recreation vehicle owners.
Bazet noted that
new products play a critical part in the company’s strategy to grow the top
line. “In addition to the current quarter launch of the new 29 LX Citizens Band
radio, Cobra also launched the 5550 PRO, an all new 5-inch navigation unit
specifically designed for the professional driver.”
Bazet also indicated that Cobra’s other new
products, launched late last year, Cobra iRadar
and Cobra PhoneLynx, continued to build sales momentum during the first
quarter of 2011.