News Feed Item

Cobra Electronics Reports First Quarter Results

Despite slightly lower net sales, seasonal operating loss is slightly smaller

CHICAGO, April 25, 2014 /PRNewswire/ -- Cobra Electronics Corporation (NASDAQ: COBR), a leading global designer and marketer of mobile communications and navigation products, today reported a net loss of $1.7 million or $0.25 per share, for the first quarter of 2014 as compared to a net loss of $1.5 million, or $0.23 per share, for the first quarter of 2013. In addition, there was an operating loss of $1.6 million for the current quarter compared to an operating loss of $1.7 million in the same quarter last year. The smaller seasonal operating loss reflected a decrease in selling, general and administrative ("SG&A") expense that was partially offset by lower net sales and gross margin.

Consolidated net sales were $21.4 million compared to $21.6 million in the first quarter of 2013, with the Cobra segment reporting a $378,000, or 2.1%, drop in sales and the Performance Products Limited ("PPL") segment reporting a sales increase of $182,000, or 5.8%. The lower sales for the Cobra segment resulted from a drop in sales of Detection products, partially offset by increases in sales of Truck Navigation products and Dash Cams. The lower sales of Detection products reflected reduced sales at certain larger domestic customers that experienced slow store traffic in the first quarter due in part to the extended and harsh winter weather, and the economic conditions in Eastern Europe. Truck Navigation sales increased primarily due to the introduction of a new product, the 6500 PRO HD. The PPL sales increase was attributable to sales of Dash Cam products, which were not sold in the same quarter of last year and the effect of foreign currency changes.

Consolidated gross margin was 27.0 percent compared to 28.9 percent in the first quarter of 2013 primarily as a result of a less favorable sales mix and some close-out sales at reduced margins. The gross margin for the Cobra segment was 26.0 percent compared to 27.4 percent in first quarter 2013, which reflected less sales of higher margin products and close-out sales of certain Detection models at lower margins. PPL's gross margin decreased to 32.7 percent from 37.4 percent last year due mainly to sales of certain older products at reduced margins.

"The Company typically experiences a seasonal operating loss in the first quarter, although the loss was slightly smaller in the first quarter of 2014 than in the same quarter last year due to significantly reduced SG&A expense. The extended and harsh winter weather and economic conditions in Eastern Europe in the first quarter of 2014 negatively impacted store traffic and net sales. Our history has shown that when the consumer shows up in the stores, our products sell-through well" said Jim Bazet, Cobra's Chairman and Chief Executive Officer.

SG&A expenses were $7.4 million in the first quarter of 2014 compared to $8.0 million in the prior year's quarter. Fixed expenses decreased as a result of lower legal and employee compensation expenses. However, these decreases were partially offset by higher variable selling expenses, which reflected an increase in sales to customers with higher promotional funds.

Interest expense for the first quarter of 2014 was $257,000 compared to $160,000 for the first quarter of 2013 primarily due to a higher average interest rate. Other income was $206,000 compared to other income of $353,000 in the prior year's quarter primarily due to a lower gain on the cash surrender value of life insurance that the Company owns for the purpose of funding deferred compensation programs for certain current and former officers of the Company. A tax benefit of $22,000 was recorded in the current quarter as compared to a $1,000 tax benefit in the first quarter of 2013.

Interest-bearing debt decreased to $13.2 million as of March 31, 2014 compared to $18.2 million at March 31, 2013. Cash on hand at March 31, 2014 was $3.4 million as compared to $4.9 million at March 31, 2013 mainly due to the timing of cash receipts. Inventory at the end of the first quarter increased to $33.7 million from $33.1 million at March 31, 2013 primarily as a result of the lower sales in the Cobra segment. Accounts receivable at the end of the quarter were $10.0 million, a decrease from $13.6 million one year earlier, which mainly reflected higher sales to customers with shorter payment terms.

The Company did not meet the required minimum amount of trailing twelve month EBITDA as defined under its credit agreement for the first quarter. The Company is currently working with its lenders to finalize the form of a waiver of the first quarter non-compliance with the credit agreement.

In discussing the outlook for the second quarter of 2014, as well as the entire year, Mr. Bazet said, "The Company anticipates an operating income in the second quarter and an improved level of operating income for fiscal year 2014 due to the initial load-ins of new placement for many exciting and innovative new products as well as the implementation of growth initiatives and continued cost and expense reduction measures."

Cobra will be conducting a conference call on April 25, 2014 at 11:00 a.m. EDT to discuss first quarter results as well as its current strategies and outlook. The call can also be accessed live or through replay via the Internet at http://www.cobra.com.

About Cobra Electronics
Cobra Electronics is a leading global designer and marketer of communication and navigation products, with a track record of delivering innovative and award-winning products. Building upon its leadership position in the GMRS/FRS two-way radio, radar detector and Citizens Band radio industries, Cobra identified new growth opportunities and has aggressively expanded into the marine market and has expanded its European operations. The Consumer Electronics Association, Forbes and Deloitte & Touche have all recognized Cobra for the company's innovation and industry leadership. To learn more about Cobra Electronics, please visit the Cobra site at www.cobra.com.

Safe Harbor
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on management's current expectations and are subject to risks and uncertainties. Actual results may differ materially from these expectations due to factors such as the acceptance of Cobra's new and existing products by customers, the continued success of Cobra's cost containment efforts and the continuation of key distribution channel relationships. Please refer to Cobra's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for a more detailed discussion of factors that may affect Cobra's performance.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts, unaudited)

For the Three Months Ended

 March 31,

 March 31,



Net sales



Cost of sales



Gross profit



Selling, general and administrative expense



Loss from operations



Other (expense) income:

Interest expense



Other, net



Loss before taxes



Tax benefit



Net loss

$ (1,666)

$ (1,532)

Net loss per common share:


$   (0.25)

$   (0.23)


$   (0.25)

$   (0.23)

Weighted average shares outstanding: 








Condensed Consolidated Balance Sheets

(in thousands, unaudited)


  March 31,

  December 31,

  March 31,




Current assets:








Accounts receivable, net




Inventories, net




Other current assets




Total current assets




Property, plant and equipment, net




Total other assets




Total assets








Current liabilities:

Accounts payable







Accrued liabilities




Short-term debt




Total current liabilities




Non-current liabilities:

Deferred taxes




Deferred compensation




Other long-term liabilities




Total non-current liabilities




Shareholders' equity




Total liabilities and shareholders' equity








SOURCE Cobra Electronics Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his session at @DevOpsSummit 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will show how customers are able to achieve a level of transparency that enables everyon...
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...