Chicago - Cobra Electronics reported higher sales and income for the first quarter of 2012.
Net income for the quarter was $339,000, compared with a net loss of $819,000 for the prior-year period. Operating income was $161,000, compared with an operating loss of $822,000 in the same quarter last year.
Cobra said the improvement reflected an increase in net sales to $26.4 million, from $22.4 million in the first quarter of 2011, and an increase in gross margin to 28.7 percent, from 26 percent in the prior year's first quarter.
Consolidated net sales increased by $4 million, or 17.7 percent, with the Cobra segment reporting an increase in net sales of $4.3 million, or 23.2 percent, and the Performance Products Limited (PPL) segment reporting a decrease of $362,000, or 9.7 percent.
The sales increase for the Cobra segment included higher European sales as well as higher domestic sales of two-way and CB radios, phone products and detection products.
The PPL sales decline was attributable to lower sales of Truckmate navigation products.
Consolidated gross margin increased to 28.7 percent, from 26 percent in the prior year's first quarter, primarily as a result of an improved product mix in both segments, the company said.
Selling, general and administrative expenses increased to $7.4 million in the current quarter, from $6.7 million in the prior year's first quarter.
Other income increased $229,000, compared with the prior year's quarter, primarily due to a $455,000 gain on the cash surrender value of life insurance that the company owns for the purpose of funding deferred compensation programs for some current and former officers of the company. This compares with a $220,000 gain in the first quarter of 2011.
A tax provision of $62,000 was recorded in the current quarter, compared with a $7,000 tax benefit in the first quarter of 2011, mainly due to higher income for Cobra Electronics Europe Limited.