Chicago — Cobra Electronics cited lower store traffic and higher-than-expected legal expenses for its lower sales and loss for the company’s first quarter.
For the quarter, ended March 31, Cobra posted net loss of $1.5 million on sales of $21.6 million. This is down from the $339,000 profit on sales of $26.4 million generated during the same period last year.
The legal expenses were related to patent legal claims, the company said.
Jim Bazet, Cobra's chairman and CEO, said the continuing slow and uneven global recovery added to the company’s first-quarter slowdown. Bazet noted that the first quarter historically is Cobra’s worst and the company tends to gain momentum as the year progresses, so he remains optimistic that Cobra’s performance will improve.