Partly blaming FCC restrictions on radar detectors, Cobra Electro...
Partly blaming FCC restrictions on radar detectors, Cobra Electronics said 3rd-quarter net income fell to $338,000 from $1.3 million year as revenue increased to $35.9 million from $35.1 million year ago. Gross margin slid to 23.4% from 25.6% year…
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ago with decline largely due to “price incentives” Cobra provided retailers to clear out radar detectors that didn’t comply with new FCC regulations, firm said. Cobra’s new line of 10-band detectors meets FCC requirements and company has sold off non-compliant inventory, CEO James Bazet said. Cobra criticized FCC for giving it and other radar detector suppliers less than 2 months to sell off noncompliant inventory, while other “newly regulated industries” have typically had year or more to comply. FCC adopted emission limits earlier this year to protect VSAT satellite terminals that industry officials complained were suffering interference from radar detectors. FCC order, which takes effect Oct. 27, required detectors meet Part 15 limits on emissions in 11.7-12.2 GHz band. Cobra officials didn’t disclose number of detectors affected by FCC regulation, but selloff during quarter accounted for 1.4% of total 2.5% decline in corporate gross margin, CFO Michael Smith said. Gross profit fell to $8.3 million from $9 million year earlier.