Cobra Turns Operating Profit; Mirabelli To Retire

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Chicago - Cobra Electronics reported an operating profit, an improved net loss, and relatively flat consolidated sales in the second quarter, ended June 30.

Cobra also announced that longtime senior VP of marketing and sales Tony Mirabelli is retiring.  

Cobra reported an operating profit of $300,000 for the second quarter of 2010, compared with an operating loss of $1.6 million for the second quarter of 2009.

Operating profit improved due to an increase in the gross margin to 26.7 percent, from 24 percent in the prior period, and a decrease in operating expenses as compared with the second quarter of 2009 of more than $1.2 million.

Cobra had a net loss of $316,000 in the quarter, which is an improvement compared with a net loss of $9.9 million for the prior year's second quarter.

Consolidated sales declined by $261,000, or 1 percent, with the Cobra segment reporting a decrease in net sales of $1.2 million, or 4.9 percent. The company's performance products limited (PPL) segment reported a sales increase of $893,000, or more than 34 percent.

The sales decrease for the Cobra segment was seen primarily in Europe. Domestic sales experienced a decline in two-way radios and radar detection, offset, in part, by growth in truck navigation and marine radios.

The PPL sales increase was attributable primarily to an increase in satellite navigation sales, as demand for the Truckmate navigation product for professional drivers and the Ventura navigation product for recreational vehicle drivers continues to grow, and outdoor leisure products, including a third-party branded GPS unit and a Snooper golf GPS unit.

In discussing the quarter, Jim Bazet, Cobra's chairman/CEO, said in a statement, "Certain uncontrollable variables -- namely, foreign exchange exposure and investment returns on the cash surrender value of life insurance -- were negative in this most recent quarter. Absent these factors, Cobra would have been profitable."

Concerning Mirabelli, who has been with Cobra for 15 years, Bazet said, "Tony has been an integral part of Cobra's history and a major force in the consumer electronics industry for more than 25 years. All of us will miss him. We wish him and his entire family the best."

Sally Washlow, who was marketing and product development VP, will replace Mirabelli. She joined Cobra more than eight years ago and previously held sales, marketing, purchasing and product development posts with Motorola and Zenith Electronics.


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