Cobra Electronics Corp. today reported a net loss of $509,000, or 8 cents per share, for the third quarter of 2009, compared to net income of $142,000, or 2 cents per share, in the same period of 2008.
Cobra, a global designer and marketer of mobile communications and navigation products, said sales declined to $27.4 million from $33.2 million in the prior year.
The Performance Products Limited segment saw an increase in sales of 15.6 percent from the third quarter of 2008, due to the demand for its truck and RV navigation products. However, that did not offset a decline of 20.2 percent for the Cobra segment, as citizens band radio and radar detection sales continued to suffer from the decline in consumer spending.
"Cobra's third quarter results reflect the effects of the continuing global recession, as distributors and retailers are closely managing working capital and consumers have curtailed spending in response to high unemployment and the decline in overall household wealth," said Jim Bazet, Cobra chairman and CEO, in a statement.
"In part, our third quarter results reflect the direction of our customers to defer shipments to the latest possible time that permits them to still have products in stock," he added. "As a result, we have seen a significant shift of business from the third quarter to the fourth quarter."
On a year-to-date basis, Cobra reported a net loss of $12 million, or $1.86 per share, as compared to net income of $1.9 million, or 30 cents per fully diluted share, in the prior year.
On a year-to-date basis, consolidated net sales for the nine-month period have declined to $72.5 million from $96.4 million, or 24.8 percent. The decline for the Cobra segment was $19.1 million, or 22.7 percent, while the decline for the PPL segment was $4.8 million, or 39.9 percent.