Chicago - Cobra Electronics reported slightly lower net income, but higher sales and operating income, for the fourth quarter, ended Dec. 31.
Cobra reported net income of $2 million for the fourth quarter as compared with a net income of $2.3 million for the fourth quarter of 2010.
The current quarter included an accounts receivable reserve of $578,000 for a significant customer that filed for bankruptcy, the first significant bad debt for Cobra in more than 15 years, which also reduced net income by $468,000, the company said.
However, operating income increased to $2.3 million for the current quarter, from $1.9 million in the same quarter last year. This significant improvement in operating income reflected an increase in net sales to $37.5 million from $34.8 million in the fourth quarter of 2010.
For the year, Cobra reported net income of $3.1 million, compared with a net income of $1.3 million in the prior year, and operating income of $4.7 million, compared with $1.6 million in 2010.
For the fourth quarter of 2011, consolidated net sales increased by $2.7 million, or 7.7 percent, with the Cobra segment reporting an increase in net sales of $2.5 million, or 8.2 percent, and the performance products limited segment reporting an increase of $160,000, or 4 percent. The sales increase for the Cobra segment included higher domestic sales of truck navigation products, two-way radios as well as higher European sales. Higher domestic truck navigation sales resulted from strong sales overall, including the 5550 PRO, which was introduced earlier this year.
"Although we are disappointed with the expense that resulted from an unexpected customer bankruptcy filing, we are still pleased to report significantly improved operating income over both the fourth quarter of 2010 and the year ended Dec. 31, 2010, particularly the increase in sales and gross margin, which was a result of the continued success of our new products and geographic expansion in Europe," said Jim Bazet, Cobra's chairman/CEO.
For the year, ended Dec. 31, 2011, consolidated net sales for Cobra increased by 11.5 percent to $123.3 million.
Net earnings were $3.08 million compared with the prior year's $1.33 million. Operating income grew to $4.7 million in 2011, as compared with $1.6 million in 2010.