Cobra 2000 Annual Report Download - page 4

2 Cobra Electronics Corporation
Cobra Electronics Report to Shareholders
We have transformed Cobra’s future.
Our phenomenal growth in 
highlights this success. We ended the year with
far superior products, markets, distribution
and global reach than when our business
transformation began three years ago.
Our growth rates in  exceeded our
promise. We promised to deliver double-digit
top line growth: we achieved  percent
growth in sales, to . million from .
million in . We promised to deliver
meaningful bottom line growth: we achieved
 percent growth in net income, to . mil-
lion from . million, and  percent growth
in earnings per diluted share, to . from .
in .
These impressive results add to the upward
trend of our overall sales and net income
growth since our transformation began. For
the three years ended December , , sales
grew  percent, while net income per diluted
share grew faster at  percent.
This trend has been noticed. In , we
were recognized by Forbes magazine as one of
the “ Best Small Companies in America.”
Deloitte & Touche added Cobra to its pres-
tigious “Fast ” Program for Greater
Chicagoland.
The New Cobra
Our  results mark a new phase in Cobra’s
evolution as a leading global manufacturer of
two-way mobile communications products.
Essentially, our transformation is complete.
Our potential, however, is just beginning.
The new Cobra is growing. We are a much
larger company than we were three years ago.
Our new size will help us to expand our
leadership positions, which include:
•Number one in radar detection
•Number one in Citizens Band radio
•Number two in the U.S. Family Radio
Service (FRS) market
•Number one in Canadian FRS
•A leading brand in European FRS
The new Cobra has technologically inno-
vative products. Many are Cobra exclusives,
and many won accolades at the 
International Consumer Electronics Show
(“CES”). Our FRS WX, with the market-
leading feature of a NOAA -channel weather
radio, won Popular Mechanics Editor’s
Choice Award. It also won a CES award for
excellence in consumer technology
innovation, as did our model   Band™
radar detection system. At the  CES in
January, we introduced our FRS Snap™
replacement fronts, an entirely new concept
in FRS that allows customers to change the
look of their radios at a moment’s notice.
The new Cobra has high-growth markets.
We have quickly penetrated the large and
growing domestic and international FRS
market. The domestic FRS market has
doubled every year for the past three years to
about  million in . In , our
global FRS business grew  percent, and our
domestic market share grew to  percent,
giving Cobra a strong number two position.
The new Cobra has an extensive distri-
bution network. In , we added Costco