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.
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
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.”