Cobra 1999 Annual Report Download - page 5

COBRA ELECTRONICS CORPORATION 3
lines; and the introduction of the
NightWatch line of illuminated
Citizens Band radios. These
successes, among the others we
outline in the pages that follow, were
driven in response to what our
customers have told us is important
to them. We have accepted the
challenge and are reshaping our
business to respond and deliver.
Focus on New Markets and
Distribution Channels
As part of our goal to reshape Cobra’s
future, we have identified the
European market as a key area of
opportunity for our products. Late in
the year, we began to take advantage
of this opportunity by introducing a
new European line of microTALK
radios. We initially launched the line
in the United Kingdom to very
positive customer response, and
added additional distributors in
Germany, Finland, France, Spain,
Sweden and Turkey, where sales are
just beginning.
Also, during 1999, we greatly
expanded our reach into the office
supply distribution channel. As a
result, we have as customers the big
three office supply retailers — Office
Depot, OfficeMax and Staples.
Focus on the Future
As existing markets continue to
evolve and as new distribution
channels and markets open, our
challenge is to anticipate what
consumers want and provide them
Net Sales ($-millions)
’97
’98
’99
$118.7
$103.4
$104.1
CARL KORN, Chairman of the Board
Gross Margin
’97
’98
’99
25.4%
23.8%
20.7%
Pretax Profit ($-millions)
’97
’98
’99
$5.8
$3.8
$3.6*
* Excludes a one-time building sale gain
what they need. To do this we will
continue to develop innovative two-
way communications products that
meet and exceed our customers’
expectations and deliver value to
consumers – and, in turn, to our
shareholders.
We thank you for your support as
we reshape Cobra’s future.... together.
Carl Korn
Chairman of the Board
James R. Bazet
President and Chief Executive Officer
Chicago, Illinois
March 30, 2000