Cobra Electronics Reports First Quarter Results

               Cobra Electronics Reports First Quarter Results

Lower Store Traffic and Higher Legal Expenses Result in Seasonal Operating

PR Newswire

CHICAGO, April 26, 2013

CHICAGO, April 26, 2013 /PRNewswire/ --Cobra Electronics Corporation (NASDAQ:
COBR), a leading global designer and marketer of mobile communications and
navigation products, today reported a net loss of $1.5 million, or $0.23 per
share for the first quarter of 2013 as compared to net income of $339,000, or
$0.05 per share for the first quarter of 2012. In addition, there was an
operating loss of $1.7 million for the current quarter compared to operating
income of $161,000 in the same quarter last year. These changes reflected a
drop in net sales of $4.8 million and an increase in fixed selling, general
and administrative expenses, primarily legal expenses relating to patent
claims. However, gross margin was 28.9 percent compared to 28.7 percent in the
prior year period, which partially offset the swing from an operating income
to an operating loss.

Consolidated net sales were $21.6 million compared to $26.4 million in the
first quarter of 2012, with the Cobra segment reporting a $4.6 million
decrease in sales and the Performance Products Limited ("PPL") segment
reporting a decrease of $206,000. The sales drop for the Cobra segment
resulted from lower Eastern European sales of radar detectors, lower European
sales of Two Way radios and lower domestic sales of Citizens Band radios and
Inverters. The decreases in both European and domestic sales reflected a more
than usual seasonal slow-down in store traffic largely as a result of weaker
consumer spending and harsher global winter weather conditions, particularly
in Eastern Europe. The PPL sales decrease was attributable to the continued
difficult economic environment in Europe.

"While we are disappointed to report a substantially lower operating
performance compared to the first quarter of 2012, we believe that our results
are reflective of the slow and uneven pace of the global economic recovery
that continues to impact the consumer electronics industry generally, as well
as the particularly difficult economic conditions across Europe. In addition,
the first quarter is traditionally our lowest sales quarter and we typically
build momentum throughout the year. Therefore, we are still optimistic about
Cobra's ability to achieve improved results for this year" said Jim Bazet,
Cobra's Chairman and Chief Executive Officer.

Consolidated gross margin was 28.9 percent compared to 28.7 percent in the
first quarter of 2012 primarily as a result of an increased percentage of
higher margin PPL sales. The gross margin for the Cobra segment was 27.4
percent, the same as in the first quarter of last year. PPL's gross margin
decreased to 37.4 percent from 38.1 percent last year reflecting mainly
foreign exchange losses compared to gains in the same quarter last year.

Selling, general and administrative expenses increased to $8.0 million in the
first quarter from $7.4 million in the prior year's quarter. Variable selling
expenses declined consistent with net sales. However, fixed expenses increased
primarily as a result of higher legal expenses resulting from the Fleming
patent infringement lawsuit that the Company believes is without merit and is
vigorously defending.

Interest expense for the first quarter of 2013 was $160,000 compared to
$253,000 for the first quarter of 2012 due to a lower interest rate. Other
income was $353,000 compared to other income of $493,000 in the prior year's
quarter due to foreign exchange losses compared to gains in the same quarter
last year.

Interest-bearing debt increased to $18.2 million as of March 31, 2013 compared
to $13.4 million at March 31, 2012. Cash on hand at March 31, 2013 was $4.9
million as compared to $1.2 million at March 31, 2012 due to the timing of
some significant cash receipts. Inventory at the end of the first quarter
increased to $33.1 million from $30.2 million at March 31, 2012 as a result of
the lower than expected sales. Accounts receivable at the end of the quarter
were $13.6 million, a decrease from $17.0 million one year earlier.

In discussing the outlook for the second quarter of 2013, as well as the
entire year, Mr. Bazet said, "The Company expects to achieve a lower operating
income in the second quarter of 2013 than in the second quarter of 2012 due to
certain initial heavy load-ins of new Truck Navigation products that will not
be repeated at the same level in 2013. However, the Company anticipates a
higher level of profitability in 2013 as compared to 2012 as Cobra's business
will be more successful in the current economic environment from the
introduction of a variety of innovative new products and planned expansion of
distribution Worldwide in the remainder of this year."

Cobra will be conducting a conference call on April 26, 2013 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

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

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,
                                             2013          2012
Net sales                                     $ 21,577     $ 26,418
Cost of sales                                 15,342        18,830
Gross profit                        6,235         7,588
Selling, general and administrative expense   7,961         7,427
(Loss) earnings from operations     (1,726)       161
Other (expense) income:
Interest expense                    (160)         (253)
Other, net                          353           493
(Loss) earnings before taxes                  (1,533)       401
Tax (benefit) provision                       (1)           62
Net (loss) earnings                           $ (1,532)    $    339
Net (loss) earnings per common share:
Basic                               $  (0.23)   $    0.05
Diluted                             $  (0.23)   $    0.05
Weighted average shares outstanding:
Basic                               6,611         6,562
Diluted                             6,611         6,580

                           Condensed Consolidated Balance Sheets
                           (in thousands, unaudited)
ASSETS:                                   March       December      March
                                         31,          31,            31,
                                         2013         2012           2012
Current assets:
Cash                             $ 4,933      $ 1,785        $ 1,150
Accounts receivable, net            13,627       20,943         17,008
Inventories, net                    33,115       38,068         30,154
Other current assets                3,114        3,071          2,347
Total current assets                54,789       63,867         50,659
Property, plant and equipment,           5,253        5,323          5,305
Total other assets                       14,321       14,300         14,332
Total assets                           $ 74,363     $ 83,490       $ 70,296
Current liabilities:
Accounts payable                  $ 2,375      $ 5,598        $ 3,975
Accrued liabilities                 6,253        7,931          6,095
Short-term debt                     18,219       20,284         13,352
Total current liabilities           26,847       33,813         23,422
Non-current liabilities:
Deferred taxes                      818          886            1,155
Deferred compensation               7,845        7,780          7,549
Other long-term liabilities         704          751            648
Total non-current                   9,367        9,417          9,352
Shareholders' equity                38,149       40,260         37,522
Total equity                        38,149       40,260         37,522
Total liabilities and shareholders'    $ $74,363    $ 83,490       $ 70,296

SOURCE Cobra Electronics Corporation

Contact: Investors: Jim Bazet, Chairman and CEO, Cobra Electronics
Corporation, 773-804-6265 ,, or Media: Chris Doyle, Annual
Reports, Inc., 317-736-8838,
Press spacebar to pause and continue. Press esc to stop.