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Cobra Electronics Corp. (COBR) Reports First Quarter Profit

Cobra Electronics Corp. (COBR), a maker of two-way and CB radios, radar detectors, and mobile navigation devices, announced first quarter earnings of $81,000 or 1 cent per fully diluted share, compared to a net loss of $720,000 or 11 cents per share in the prior year. Profit improved despite a decrease in revenues from $32.0 million to $28.9 million. The Performance Products Limited (“PPL”) segment that was acquired in October 2006 made its first accretive contribution to earnings with improved gross margins on a 39% increase in sales.

“We are pleased with Cobra’s improved performance in the first quarter and our return to profitability,” said Jim Bazet, Cobra’s President and Chief Executive Officer. “In particular, the performance of PPL was very strong, reflecting the broadening of their marketing and distribution channels beyond the U.K., new business opportunities and the availability of Cobra’s resources to assist with product sourcing and development. Cobra is forecasting that the company will return to profitability in 2008, although revenue is likely to decline from the prior year, as we only selectively pursue niche opportunities in mobile navigation in North America. This pattern is likely to be evident in second quarter results, as we anticipate lower revenue but an improved bottom line relative to the prior year.”

COBR at $3.16 per share trades is a significant discount to net tangible assets of $5.80 per share, and an even steeper discount to book value of $9.99 per share. The company has a solid balance sheet and ample liquidity with a quick ratio of 2.3. With a market cap of $20.5 million, COBR recognized $155 million in revenues in 2007.

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