8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 23, 2003

COBRA ELECTRONICS CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware	0-511	36-2479991
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6500 West Cortland Street, Chicago, Illinois	60707
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (773) 889-8870

N/A

(Former Name or Former Address, if Changed Since Last Report)

Item 7.    Financial Statements and Exhibits.

(a)    Exhibits.

99-1    Press release, dated October 23, 2003, issued by Cobra Electronics Corporation.

Item 12.    Results of Operations and Financial Condition.

On October 23, 2003, Cobra Electronics Corporation released earnings information for the quarter ended September 30, 2003. A copy of the press release is attached hereto as Exhibit 99-1 and incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	COBRA ELECTRONICS CORPORATION
Date:  October 24, 2003	By:	/s/  Michael Smith
		Michael Smith Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

The following exhibits are filed herewith:

Exhibit No.
99-1	Press release, dated October 23, 2003, issued by Cobra Electronics Corporation.

EX-99.1

Exhibit 99-1

[COBRA LOGO APPEARS HERE]

FOR IMMEDIATE RELEASE

Investor Contact:	Michael Smith
	Senior Vice President and CFO
	Cobra Electronics Corporation
	773-804-6281
	msmith@cobra.com
Media Contact:	Jenny Courtad
	312-729-4312
	jcourtad@golinharris.com
	Marlene Wechselblatt
	212-309-1427
	mwechselblatt@golinharris.com

COBRA ELECTRONICS REPORTS THIRD QUARTER RESULTS

CHICAGO, IL – OCTOBER 23, 2003 – Cobra Electronics Corporation (Nasdaq: COBR), a leading global manufacturer of mobile communications products, today announced results for its third quarter ended September 30, 2003.

For the quarter, Cobra reported net income of $391,000, or $.06 per diluted share, compared to net income of $338,000, or $.05 per diluted share, one year ago. The company reported net sales of $26.3 million, down from $35.9 million one year ago. Gross margin for the third quarter increased to 26.9 percent from 23.4 percent in the third quarter of 2002. Selling, general and administrative expenses were $6.6 million, more than 14 percent below the $7.7 million incurred in the third quarter of 2002.

“Cobra is pleased to announce an improvement in net income for the third quarter relative to last year,” said Jim Bazet, Cobra’s President and Chief Executive Officer. “This increase reflects improved gross margins and tight controls over expenses, as our team increases its focus on managing the ‘controllable’ elements of our business in a continued difficult business environment. Cobra also benefited from favorable currency movements from sales in our European markets, as well as from an increase in the cash surrender value of certain life insurance policies, offsetting the substantial decline in the value of these assets over the past several quarters.”

Mr. Bazet added that third quarter sales include shipments of Cobra’s first two handheld GPS models, the GPS 100 and the GPS 500. “We are pleased with the initial market

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Cobra Electronics Third Quarter Results – 2

acceptance of the Cobra GPS products, endorsing our efforts to build the fastest and most user-friendly products in the market today,” noted Mr. Bazet. “As we approach the first quarter of 2004 launch of our third handheld GPS product, featuring Rand-McNally mapping software with street-level maps and points of interest, as well as our mobile GPS navigation products, we are confident that we have established a base of enthusiastic retailers and consumers for Cobra GPS.” Mr. Bazet discussed sales results, noting the intensified competition in the two-way radio market. “The continuing efforts of retailers to control inventory levels and build store traffic with low price-point promotions led to a significant decline in two-way radio sales.”

For the nine months ended September 30, 2003, Cobra reported net income of $345,000, or $.05 per diluted share, as compared to $723,000, or $.11 per diluted share, for the prior year period. The decline was primarily due to the decline in net sales to $73.5 million for the nine-month period versus $93.2 million for the same period in 2002. This decline was offset, in part, by improved gross margins and lower selling, general and administrative expenses.

Cobra maintained its strong balance sheet position during the third quarter. The company had net interest-bearing debt (long-term bank debt less cash) of $2.0 million, as of September 30, 2003, as compared to $2.4 million one year earlier. Inventory increased to $30.5 million from $24.0 million the prior year, primarily due to the timing of inventory receipts. Accordingly, purchase commitments were $10.9 million less than the prior year. Accounts receivable at the end of the quarter decreased to $15.3 million from $25.3 million as a result of lower sales and increased collections activity. Net book value per share on September 30, 2003 increased to $8.82 from $8.60 one year ago.

Mr. Bazet also provided the company’s outlook for the fourth quarter. “While some economic uncertainty remains, Cobra is forecasting a strong fourth quarter, with sales equal to or exceeding those of last year. We are also continuing to manage margins and expenses closely and expect that earnings will exceed those of last year. For the full year, we anticipate that our continued cost containment program will permit Cobra to generate net income in excess of 2002 levels although sales will decline from 2002 levels.”

Cobra will be conducting a conference call on October 23, 2003 at 11:00 a.m. EDT to discuss the third quarter results as well as its current strategies and outlook. The call can also be accessed live or through replay via the Internet at http://www.cobra.com.

About Cobra Electronics

Cobra Electronics Corporation (Nasdaq: COBR) is a leading global manufacturer of mobile communications products for consumers, having attained a leadership position in every market in which it currently does business. The FRS/GMRS (Family Radio Service/General Mobile Radio Service) market is one of the largest categories of mobile communications, and Cobra is a leading provider in the U.S., Canada and Europe. In addition, 2003 marks Cobra’s entry into the GPS (Global Positioning System) market with the development of another innovative mobile communications product line. Cobra, ranked among Forbes’ 200 Best Small Companies for two of the past three years, has a track record of designing innovative and award-winning products. To learn more about Cobra Electronics, please visit the Cobra site at www.cobra.com.

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Cobra Electronics Third Quarter Results – 3

Safe Harbor

The statements in this release concerning the company’s sales and profit growth are forward-looking statements that involve certain risks and uncertainties, the acceptance of the company’s new and existing products by customers, continued success of the company’s cost containment efforts and continuation of key distribution channel relationships. These forward-looking statements are based on assumptions that the company believes to be reasonable. No assurance can be given that the assumptions will prove to be correct, and the difference between assumptions and actual results could be material.

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Cobra Electronics Third Quarter Results – 4

Condensed Consolidated Statements of Income

(in thousands, except per share amounts, unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2003			September 30, 2002			September 30, 2003			September 30, 2002
Net sales	$	26,304		$	35,924		$	73,481		$	93,231
Cost of sales		19,232			27,528			53,538			70,851
Gross profit		7,072			8,396			19,943			22,380
Selling, general and administrative expenses		6,615			7,729			19,483			20,900
Operating income		457			667			460			1,480
Other income (expense):
Interest expense		(43	)		(43	)		(103	)		(183	)
Other, net		238			(70	)		214			(23	)
Income before taxes		652			554			571			1,274
Tax provision		261			216			226			551
Net income	$	391		$	338		$	345		$	723
Net income per common share:
Basic	$	0.06		$	0.05		$	0.05		$	0.11
Diluted	$	0.06		$	0.05		$	0.05		$	0.11
Weighted average shares outstanding:
Basic		6,420			6,407			6,420			6,357
Diluted		6,506			6,553			6,491			6,515

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Cobra Electronics Third Quarter Results – 5

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

	September 30, 2003		December 31, 2002		September 30, 2002
ASSETS:
Current assets:
Cash	$	2,360	$	2,829	$	1,555
Accounts receivable, net		15,250		24,784		25,302
Inventories, net		30,466		20,956		23,962
Other current assets		11,289		10,420		10,962
Total current assets		59,365		58,989		61,781
Net property, plant and equipment		6,665		7,420		7,683
Total other assets		12,523		8,773		7,526
Total assets	$	78,553	$	75,182	$	76,990
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	5,324	$	4,292	$	4,782
Accrued liabilities		4,286		7,153		4,939
Total current liabilities		9,610		11,445		9,721
Non-current liabilities:
Deferred taxes		3,673		3,673		4,385
Deferred compensation		4,300		3,785		3,773
Long-term debt		4,359		0		3,918
Total non-current liabilities		12,332		7,458		12,076
Total shareholders’ equity		56,611		56,279		55,193
Total liabilities and shareholders’ equity	$	78,553	$	75,182	$	76,990