Chicago — Cobra Electronics reported lower net income and sales during the third quarter, ended Sept. 30.
Net income was $564,000, compared with $1.4 million year on year. Operating income was $304,000 for the current quarter, compared with $2.3 million in the same quarter last year.
Lower profits reflected a drop in net sales to $27.7 million from $34.5 million and a gross margin of 28.1 percent, compared with 29.9 percent in the prior-year period.
Consolidated net sales were $27.7 million, compared with $34.5 million in the third quarter of 2011, with the Cobra segment reporting lower sales of $6.9 million and the Performance Products Limited (PPL) segment reporting an increase of $163,000, or 4.6 percent.
The sales drop for the Cobra segment resulted from lower domestic sales of CB radios, truck navigation, two-way radio and detection products, but was partially offset by higher European sales.
“While we are very disappointed to report a substantially lower operating performance from the third quarter of 2011, which primarily resulted from an unexpected slowdown in store traffic at both retail and travel centers, we are still optimistic about our fourth quarter, typically the company's best financial quarter of the year” said Jim Bazet, Cobra's chairman and CEO, in a statement.