Chicago – Cobra Electronics reported lower income and slightly lower sales in the fourth quarter ended Dec. 31, 2012.
Net income was $1.4 million in the quarter down $600,000 from the prior year’s final quarter and operating income was also $1.4 million, down from the prior year’s $2.3 million.
Net sales were $35.7 million, down from the prior fourth quarter’s $37.5 million and a gross margin of 28.8 percent compared to 31.4 percent in the prior year period.
For the year, Cobra reported net income of $3.2 million, as compared to a net income of $3.1 million in the prior year and operating income of $3.3 million as compared to $4.7 million in 2011.
Consolidated net sales were $35.7 million compared to $37.5 million in the fourth quarter of 2011, with the Cobra segment reporting lower sales of $496,000, or 1.5 percent and the Performance Products Limited (“PPL”) segment reporting a decrease of $1.3 million, or 31.0 percent.
The sales drop for the Cobra segment resulted from lower European sales of Two Way radios and lower domestic sales of Truck Navigation products and Two Way radios, but was partially offset by higher domestic sales of Citizens Band radios.
The lower domestic Truck Navigation sales reflected more promotional pricing this quarter due to increased competition while the lower domestic Two Way radio sales resulted from lower sell-through at a major retailer in part due to the economic climate in the fourth quarter.
The increase in domestic Citizens Band radio sales reflected a pick-up in Travel Center sales. The PPL sales decrease was attributable to lower sales of Truckmate navigation products as a result of a difficult economic environment and increased competition in the fourth quarter, Cobra said.
“While we are disappointed to report a lower operating performance from the fourth quarter of 2011, we believe that our results are reflective of the slow and uneven pace of the global economic recovery as well as the particularly difficult economic conditions across Western Europe. However, we are still optimistic about Cobra’s ability to achieve improved results in 2013,” said Jim Bazet, Cobra’s chairman/CEO.