Cobra Electronics (COBR), a maker of mobile communications and navigation products, slumped as investors showed their displeasure at the company's forecast of declining earnings.
The company believes this year's sales will exceed those of 2005, but earnings will probably fall. Cobra attributed the profit decrease to delays in the introduction of certain higher-margin products and substantial airfreight expenses that will likely be recorded.
For the third quarter, Cobra said sales will be roughly equal to last year, but net income will drop.
Cobra's second-quarter sales rose 17.6% from last year to $39.6 million, while it swung to a loss of $2.7 million, or 40 cents a share. During the same quarter a year ago, it earned $723,000 and 11 cents a share.The loss for the quarter resulted from charges of $4.6 million. Without them, Cobra would have earned 5 cents. Cobra's shares dropped $1.65, or 15.7%, to $8.85.