Welcome!

Microsoft Cloud Authors: Stackify Blog, Liz McMillan, David H Deans, Automic Blog, Pat Romanski

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
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
SYS-CON Events announced today that Grape Up 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. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.