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.
