Welcome!

Microsoft Cloud Authors: David H Deans, Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog

News Feed Item

Cobra Electronics Reports Third Quarter Results

Sluggish Store Traffic impacts Net Sales and Operating Income

CHICAGO, Nov. 8, 2012 /PRNewswire/ -- Cobra Electronics Corporation (NASDAQ: COBR), a leading global designer and marketer of mobile communications and navigation products, today reported net income of $564,000, or $0.09 per share for the third quarter of 2012 as compared to  net income of $1.4 million, or $0.21 per share for the third quarter of 2011.  In addition, operating income was $304,000 for the current quarter compared to $2.3 million in the same quarter last year. This significant reduction reflected a drop in net sales to $27.7 million from $34.5 million and a gross margin of 28.1 percent compared to 29.9 percent in the prior year period.

Consolidated net sales were $27.7 million compared to $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 Citizens Band radios, Truck Navigation, Two Way radio and Detection products, but was partially offset by higher European sales. The lower domestic Citizens Band radio and Truck Navigation sales reflected significantly reduced store traffic in travel centers and in the case of Citizens Band radios, strong sales from the third quarter of 2011 that included sales of a limited edition model that was not repeated in 2012.  The drop in Two Way radio and Detection sales also reflected lower retail store traffic as certain large retailers pushed out orders into the fourth quarter. European sales included in the Cobra segment increased by nearly 6% representing higher Detection sales into Eastern Europe. The PPL sales increase was attributable to higher sales of satellite navigation products.

"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 Chief Executive Officer.

Consolidated gross margin was 28.1 percent compared to 29.9 percent in the third quarter of 2011 primarily as a result of a less favorable product mix. The gross margin for the Cobra segment was 27.0 percent versus 29.2 percent in the same quarter last year as higher margin products represented a much smaller percentage of total sales and as a result of an unfavorable foreign exchange impact. PPL's gross margin declined to 35.3 percent from 36.0 percent last year reflecting a slightly unfavorable product mix.

Selling, general and administrative expenses decreased to $7.5 million in the third quarter from $8.0 million in the prior year's quarter. The decrease related to variable selling expenses, which declined consistent with net sales, partially offset by higher fixed expenses, principally in the Cobra segment, that represented mainly increased salary and travel expenses.

Interest expense for the third quarter of 2012 was $277,000 compared to $272,000 for the third quarter of 2011. Other income was $336,000 compared to other expense of $899,000 in the prior year's quarter primarily due to a $274,000 gain on the cash surrender value of life insurance that the Company owns for the purpose of funding deferred compensation programs for several current and former officers of the Company as compared to a $671,000 loss in the third quarter of 2011.

Interest-bearing debt increased to $22.6 million as of September 30, 2012 compared to $20.2 million at September 30, 2011. Cash on hand at September 30, 2012 was $3.4 million as compared to $1.3 million at September 30, 2011 due to the timing of cash receipts. Inventory at the end of the third quarter increased to $38.9 million from $32.5 million the prior year as a result of ordering product within lead times for anticipated third quarter sales, which were lower than expected. Accounts receivable at the end of the quarter were $17.9 million, a decrease from $22.1 million one year earlier.

On a year-to-date basis, consolidated net sales for Cobra decreased by 3.0 percent, to $83.2 million from $85.8 million due to the sales drop in the third quarter compared to the same quarter last year. However, an improved gross margin partially offset this sales shortfall and resulted in operating income of $1.9 million for the first nine months as compared to operating income of $2.5 million for the prior year's period.  The net income for the year-to-date period was $1.8 million, or $0.27 per share, as compared to a net income of $1.1 million, or $0.16 per share in the prior year.

In discussing the outlook for the fourth quarter of 2012, as well as the entire year, Mr. Bazet said, "The Company expects to achieve better results in the fourth quarter of 2012 than in the fourth quarter of 2011 in part due to the movement of certain orders from third quarter 2012 to fourth quarter 2012. In addition, the Company anticipates a similar level of profitability in 2012 as compared to 2011."

Cobra will be conducting a conference call on November 8, 2012 at 11:00 a.m. EST to discuss third quarter results as well as its current strategies and outlook.  The call can also be accessed live or through replay via the Internet at http://www.cobra.com.

About Cobra Electronics
Cobra Electronics is a leading global designer and marketer of communication and navigation products, with a track record of delivering innovative and award-winning products.  Building upon its leadership position in the GMRS/FRS two-way radio, radar detector and Citizens Band radio industries, Cobra identified new growth opportunities and has aggressively expanded into the marine market and has expanded its European operations. The Consumer Electronics Association, Forbes and Deloitte & Touche have all recognized Cobra for the company's innovation and industry leadership.  To learn more about Cobra Electronics, please visit the Cobra site at www.cobra.com.

Safe Harbor
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on management's current expectations and are subject to risks and uncertainties.  Actual results may differ materially from these expectations due to factors such as the acceptance of Cobra's new and existing products by customers, the continued success of Cobra's cost containment efforts and the continuation of key distribution channel relationships.  Please refer to Cobra's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for a more detailed discussion of factors that may affect Cobra's performance.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts, unaudited)


























































For the Three Months Ended


For the Nine Months Ended







 Sept 30,


 Sept 30,


 Sept 30,


 Sept 30,







2012


2011


2012


2011


















Net sales




$

27,672


$

34,454


$

83,174


$

85,753

Cost of sales





19,893



24,155



58,949



61,430


Gross profit





7,779



10,299



24,225



24,323

Selling, general and administrative expense



7,475



7,952



22,315



21,847


Earnings from operations



304



2,347



1,910



2,476

Other (expense) income:















Interest expense




(277)



(272)



(765)



(795)


Other, net





336



(899)



685



(738)

Earnings before taxes




363



1,176



1,830



943

Tax (benefit) provision




(201)



(202)



25



(133)

Net earnings




$

564


$

1,378


$

1,805


$

1,076


















Net earnings per common share:














Basic




$

0.09


$

0.21


$

0.27


$

0.16


Diluted




$

0.09


$

0.21


$

0.27


$

0.16


















Weighted average shares outstanding: 














Basic





6,611



6,540



6,595



6,522


Diluted





6,633



6,540



6,610



6,522


















 



Condensed Consolidated Balance Sheets



(in thousands, unaudited)

























ASSETS:






  Sept 30,


  December 31,


  Sept 30,








2012


2011


2011

Current assets:











Cash 





$

3,434

$

1,033

$

1,289


Accounts receivable, net




17,894


23,400


22,064


Inventories, net





38,946


34,093


32,487


Other current assets





3,293


2,726


2,931


Total current assets





63,567


61,252


58,771













Property, plant and equipment, net




5,373


5,367


5,485













Total other assets





14,309


13,976


13,844

Total assets





$

83,249

$

80,595

$

78,100

























LIABILITIES AND SHAREHOLDERS' EQUITY:



















Current liabilities:











Accounts payable




$

5,870

$

7,368

$

6,655


Accrued liabilities





6,442


8,910


7,445


Short-term debt





22,578


18,655


20,172


Total current liabilities




34,890


34,933


34,272













Non-current liabilities:











Deferred taxes





914


1,159


1,203


Deferred compensation




7,730


7,392


7,242


Other long-term liabilities




742


588


533


Total non-current liabilities




9,386


9,139


8,978













Equity:












Shareholders' equity - Cobra




38,973


36,523


34,850


Total equity





38,973


36,523


34,850













Total liabilities and shareholders' equity


$

83,249

$

80,595

$

78,100













 

SOURCE Cobra Electronics Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...