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2009 Annual Report 3
needs of drivers for a range of products from entry price point
models to highly featured products. Additionally, half of the
products in the 2009 line were capable of incorporating the AURA
database, providing an extra measure of safety to drivers. Our
efforts have been rewarded with exclusive placement in one of the
country’s largest automotive aftermarket retailers and displacement
of a competitor from a major consumer electronics retailer.
Consumers and retailers alike are searching for companies that
display social consciousness while still satisfying their product
needs. In recognition of this, Cobra introduced in 2009 new “green”
packaging for our two-way radio line, which reduces plastic use
by more than 50% and reduces the overall packaging footprint
by an average of 10%. In addition to mitigating environmental
consequences, the new packaging has the benefit of being easier
to open and the smaller footprint permits the retailer to better use
their limited shelf space.
Other successes in 2009 include the launch of new marine
products, including floating VHF handheld radios and GPS-enabled
tracking devices for boats. Cobra also entered into an exclusive
relationship with Sea Tow, an international marine assistance
organization, to feature the Cobra Marine VHF radios to their
160,000 members.
While we are proud of these accomplishments, we did not
emerge unscathed from the economic downturn. Our net loss for
2009 was $10.3 million on sales of $105.2 million, including a
tax valuation allowance charge of $8.4 million. Additionally, our
efforts to contain expenses resulted in the loss of some long-time
employees; we miss their expertise and, of course, their friendship.
As we look ahead to 2010, the global economic climate appears
to have stabilized although growth in 2010 is not forecasted to be
robust. In spite of this less than sanguine macroeconomic outlook,
Cobra has confidence that we have laid the foundation for a return
to growth and profitability. We look forward to a successful year
with the support of our vendors, customers, shareholders and
employees.
Sincerely,
Jim Bazet
Chairman of the Board, President and Chief Executive Officer
March 26, 2010