Cobra Electronics Corp., a designer and marketer of mobile communications and navigation products, today reported an increase in fourth-quarter net earnings.
Net earnings for the quarter that ended Dec. 31 were $2.3 million, or 36 cents a share, compared with $1.8 million, or 27 cents a share, in the fourth quarter of 2009.
The improvement resulted from higher net sales, which increased by $2.1 million, or 6.3 percent, to $34.8 million, compared with $32.8 million in the prior year's quarter, as well as from higher gross margin, which increased 2.1 points, to 27.9 percent, from 25.8 percent in the fourth quarter of 2009, the company said.
For the year, Cobra reported net income of $1.6 million, or 24 cents a share, compared with a net loss of $10.3 million, or $1.59 a share, in the prior year.
"We are pleased to report to our shareholders greatly improved profitability for the fourth quarter and a return to profitability for the year," chairman and CEO Jim Bazet said in a statement.
"The fourth quarter continued the steady progress we've made during the year to improve our business, including increased net sales, improved gross margin and containment of selling, general and administrative expense, all of which were key factors in the strong growth in performance for the current quarter."
Bazet said the company anticipates higher profitability this year.
"Moreover, we feel that the slowly improving global economy will favorably impact our business in 2011 as we continue to maintain our focus on containing expenses and managing working capital," he added. "The company is likely to achieve better results in the first quarter of 2011 than in the prior year; however, a seasonal operating loss is likely."