Cobra Electronics Corp., a leading designer and marketer of mobile communications and navigation products, reported net earnings of $874,000, or 14 cents a share, for the third quarter.
That compares with a net loss of $509,000, or 8 cents a share, in the third quarter of 2009.
Results improved because of higher sales, an increase in the gross margin and a decrease in operating expenses, compared with the third quarter of 2009, the company said.
Consolidated sales improved by $1.5 million, or 5.5 percent, for the quarter that ended Sept. 30. The Cobra segment reported an increase in net sales of $622,000, or 2.5 percent, and the Performance Products Limited segment reported an increase of $882,000, or 31 percent.
"We are pleased to report to our shareholders improved performance for the third quarter and a return to profitability," chairman and CEO Jim Bazet said in a statement. "We have made great progress to improve our business, including increased sales, improved gross margins and management of our selling, general and administrative expenses - all of which resulted in profitability for the quarter.
"Both segments contributed to this improved performance, with the Cobra segment net income increasing by $972,000 and the PPL segment net income increasing by $411,000," he added. "We have also laid the groundwork for continued success in the fourth quarter and next year as we launched new products that have garnered positive reviews from distributors, retailers, the trade media and, most importantly, consumers."
On a year-to-date basis, consolidated net sales for Cobra have increased by 4.5 percent, to $75.7 million, from $72.5 million, driven by new products and distribution, particularly for the PPL segment.
The company had a net loss for the first nine months of $759,000, or 12 cents a share, compared with a net loss of $12 million, or $1.86 a share, in the prior year.