Cobra Electronics Corp., a designer and marketer of mobile communications and navigation products, today reported net income of $1.4 million, or 21 cents a share, for the third quarter, compared with $799,000, or 12 cents a share, for the quarter a year earlier.
In addition, operating income increased to $2.3 million for the quarter that ended Sept. 30 from $522,000 in the same quarter last year. The improvement reflected an increase in net sales to $34.5 million from $28.9 million and an increase in gross margin to 29.9 percent from 25.5 percent in the prior period, the company said.
Consolidated net sales increased by $5.5 million, or 19.2 percent, with the Cobra segment reporting an increase in net sales of $5.7 million, or 22.8 percent, and the Performance Products Limited segment reporting a decrease of $184,000, or 4.9 percent.
“We are pleased to report substantially improved operating performance over the third quarter of 2010, particularly the increase in sales and gross margin, which was a result of the continued success of our new products and the marketing support behind them,” Cobra chairman and CEO Jim Bazet said in a statement.
On a year-to-date basis, consolidated net sales for Cobra increased by 13.3 percent, to $85.8 million, from $75.7 million, driven by new products and new and expanded distribution.
Net income for the year to date was $1.1 million, or 16 cents a share, compared with a net loss of $925,000, or 14 cents a share, in the prior year.
“The company expects to achieve better results in the fourth quarter of 2011 than in the fourth quarter of 2010,” Bazet said. “The company also anticipates a substantial increase in profitability in 2011, driven by the introduction of innovative new products, as well as new and expanded distribution and marketing channels. In addition, we feel that the slowly improving global economy will continue to favorably impact our business in 2011.”