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 first quarter."
Both segments 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.
Also contributing 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.