Cobra Electronics is involved in the design and marketing of leading-edge mobile communication and navigation devices. The company’s products vary wildly within the consumer electronics industry, including GPS navigation systems, two-way & citizen band radios, radar detection devices, marine electronics, and more.
Cobra has been turning a lot of heads this week, as reports of increased second quarter earnings reached investors everywhere. Recorded net income was $1.7 million, an amazing turn-around from last year’s second quarter loss of $434,000. Cobra attributes the positive effects to improved gross margins and reduced operating expenses, as well as a significant sales boost from the performance products limited (“PPL”) section of its business.
“We are pleased with Cobra’s improved performance in the second quarter,” comments Jim Bazet, Cobra Electronics’ president and CEO. “In particular, the performance of PPL was very strong, continuing the trends evident in their first quarter results. New business opportunities and a broad assortment of mobile navigation offerings drove higher sales and an increase in operating earnings to $1.9 million from $81,000 in the prior year’s second quarter. In the Cobra segment, higher gross margins and lower operating expenses led to earnings from operations of $782,000, as compared to a loss from operations of $1.3 million in the prior year.”
The outlook for the remainder of 2008 seems heightened, with the company expecting to return to profitability. Jim Bazet believes that the pattern aimed toward that end will be ascertainable in third quarter financial results.
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