Chicago - Cobra Electronics reported higher income and net sales in the third quarter.
Net income for the quarter was $1.4 million compared with the prior year's third quarter net income of $799,000. In addition, operating income increased to $2.3 million for the current quarter from $522,000 in the same quarter last year.
Net sales improved to $34.5 million from $28.9 million and an increase in gross margin to 29.9 percent from 25.5 percent in the prior period. consolidated net sales increased by $5.5 million, or 19.2 percent, with the Cobra segment reporting an increase in net sales of $5.7 million, or 22.8 percent, and the Performance Products Limited (PPL) segment reporting a decrease of $184,000, or 4.9 percent.
The sales increase for the Cobra segment resulted from higher domestic sales of citizens-band radios, inverters and truck navigation products, as well as higher European sales. The increase in domestic citizens band radio sales reflected strong demand for the Cobra's 29 LX Series, including a limited edition chrome model that was introduced at the end of the quarter.
"We are pleased to report substantially improved operating performance over the third quarter of 2010, particularly the increase in sales and gross margin, which was a result of the continued success of our new products and the marketing support behind them," said Jim Bazet, Cobra's chairman/CEO.
In discussing the outlook for the fourth quarter of 2011, as well as the entire year, Bazet said Cobra "expects to achieve better results in the fourth quarter of 2011 than in the fourth quarter of 2010. The company also anticipates a substantial increase in profitability in 2011 driven by the introduction of innovative new products as well as new and expanded distribution and marketing channels. In addition, we feel that the slowly improving global economy will continue to favorably impact our business in 2011."