COBR. IMO. I haven't been following this company, and do not have
their past financials in hand, but it seems this quarter
is a disappointment for both earnings and revenues growth.
Didn't they earn about $1mm in the last six months? Is this a
trend reversal or a seasonal event? What about these new products?
...............BML
Indianapolis Latest City To Employ Safety Alert(R) Technology
CHICAGO, May 13 /PRNewswire/ -- Fueled by sales of higher-margin products
as well as continuing cost reductions, Cobra Electronics Corporation
(Nasdaq: COBR) today reported a net profit for the first quarter of 1997.
For the first quarter of 1997, the company reported net income of $93,000,
or $0.02 per share, compared to a net loss of $583,000, or $0.09 per share,
for the first quarter of 1996. Sales for the current quarter were
$17.9 million compared to $19.3 million for same period a year ago. Gross
margin in the first quarter of 1997 increased to 19.6 percent from
16.3 percent in the year ago period.
"This is our fourth consecutive profitable quarter, and it was
accomplished because of a combination of significantly higher gross margin and
lower costs," said Jerry Kalov, president and chief executive officer. "Gross
margin was up because last year's first quarter included more sales of lower-
margin close out and factory reconditioned product, which is also the main
reason for the sales drop. Domestic CB sales were up for the quarter as were
our international sales. Lower selling, general and administrative costs,
primarily volume-related, and lower interest expense, because of reduced debt
levels, also contributed to positive results in the first quarter."
Kalov said that he feels the company is well-positioned for sales and
profit growth in 1997. "That the company is able to sustain its profitability
in a quarter that is traditionally the weakest in the consumer electronics
industry gives us strong momentum as we move into the seasonally stronger
quarters of the year. Also, in the second quarter, we will begin shipping new
CB models with our exclusive, patent-pending SoundTracker(TM) noise reduction
system. This is a revolutionary new technology, which significantly reduces
static when a CB is in the receiving mode and allows the user's voice to break
through cluttered airwaves when transmitting. We expect strong sales of these
new models from accelerated replacement of older CBs by users who want this
new technology."
The company also reported an important opportunity for its patented, FCC-
approved Safety Alert transmitters. It has placed 60 transmitters on law
enforcement, fire and ambulance vehicles that service the Indianapolis area.
This follows the agreement with the city of Dayton, where 50 such vehicles
were outfitted with transmitters in late 1996.
"The acceptance of Safety Alert technology as an effective way to reduce
accidents and save lives continues to grow," said Kalov. "This high-profile
opportunity in Indianapolis is a further validation of Safety Alert technology
as the industry standard."
Kalov added that the company has started to ship the industry's first
Safety Alert Traffic Warning Detector, which receives all three Safety Alert
signals but does not detect radar or laser guns. Kalov expects this model to
give a boost to sales of transmitters, as many police and other safety
departments have indicated they would be more likely to purchase transmitters
if "safety-only" receivers were available to the public. There are currently
170 million vehicles not using a radar detector that are potential buyers of
Traffic Warning Detectors.
The statements in this release concerning the Company's sales and profit
growth are forward-looking statements that involve certain risks and
uncertainties, including the acceptance of the Company's new and existing
products by customers, continued success of the Company's cost containment
efforts, and continuation of key distribution channel relationships. These
forward-looking statements are based on assumptions which the Company believes
to be reasonable. No assurance can be given that the assumptions will prove
to be correct, and the difference between assumptions and actual results could
be material.
Cobra Electronics Corporation, headquartered in Chicago, IL, designs and
markets consumer electronics products. These include CB radios with the
exclusive SoundTracker system, Family Radio Service radios, Intenna(R)
cordless telephones and telephone answering systems, integrated radar/laser
detection systems that incorporate the Safety Alert feature, and Safety Alert
receivers in the U.S. and around the world, as well as Safety Alert
transmitters for the domestic emergency vehicle, road construction and public
utility markets.
COBRA ELECTRONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except EPS, unaudited)
Three Months Ended
March 31,
1997 1996
Net Sales $17,915 $19,272
Cost of Sales 14,403 16,139
Gross Profit 3,512 3,133
Selling, general and administrative expense 3,134 3,417
Operating income 378 (284)
Other income (expense):
Interest (262) (470)
Other, net (23) 171
Income (loss) before taxes 93 (583)
Provision (benefit) for taxes --- ---
Net income (loss) $93 $(583)
Net income (loss) per share $0.02 $(0.09)
Shares outstanding 6,242 6,230
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