Chicago – Cobra Electronics blamed the continued poor worldwide economic performance along with legal expenses for its $1.9 million drop in income on sales of $25.6 million for the second quarter, ended June 30.
The $1.9 million income fall off was down from the $902,000 in net income generated during the same period last year and consolidated sales were down about $3.5 million from 2012.
Jim Bazet, Cobra chairman and CEO, noted that a significant amount of the loss was due to payments for the Fleming patent litigation along with decreased sales of CB radios and truck navigation products.
However, Bazet believes Cobra’s financial situation will brighten during its traditionally stronger third and fourth quarters.
During Cobra’s financial analyst call Bazet said the ongoing Hoyt A. Fleming patent case will continue to increase the company’s legal expenditures, but he believed it would be at a lower rate going forward.
Fleming is alleging infringements on 30 patents in Cobra’s radar-detection products.