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Comarco Reports Third Quarter Fiscal 2012 Financial Results
Dec 15, 2011 (05:12 PM EST)


LAKE FOREST, Calif., Dec. 15, 2011 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO), a leading provider of innovative mobile power solutions through its ChargeSource® line of multi-function universal mobile power products, today announced its financial results for the third quarter of fiscal 2012 ended October 31, 2011.

Revenue for the third quarter of fiscal 2012 was $2.3 million compared to $5.5 million for the third quarter of fiscal 2011.  The Company reported a net loss of $0.8 million, or $(0.10) per share, for the recent third quarter, which compares to a net loss of $1.3 million, or $(0.18) per share, for the third quarter of the prior fiscal year.  On a sequential basis, the third quarter net loss represents a 61 percent improvement from the $1.9 million net loss in the second quarter of fiscal 2012.

"Our third quarter results reflect significant progress in our efforts to right-size our cost structure while positioning Comarco for future growth," said Tom Lanni, President and Chief Executive Officer of Comarco.  "By further reducing both fixed and variable operating expenses while executing our direct-to-consumer internet strategy, we are now prepared for the launch of our next-generation ChargeSource power adapter through our website, ChargeSource.com later this fiscal year.  The planned direct-to-consumer sales of our newest generation power adapter should provide us with an opportunity to accelerate revenue growth and improve our operating margins."

"Our gross margin increased slightly in the third quarter compared to the third quarter of fiscal 2011.  Looking forward, we expect our gross profit to increase further with the ramp-up of sales through our website during fiscal 2013.  In addition to our new sales strategy, we recently announced the execution of an agreement in which we licensed a portion of our patented technology to Cooler Master, Inc.  This was the first license agreement reached as part of our new strategy to realize the value of our extensive patent portfolio.  This license agreement should assist us in monetizing additional value from our patent portfolio in fiscal 2013," concluded Mr. Lanni.

Nine Months of Fiscal 2012 Financial Results

  • Revenue of $7.1 million, compared with $25.8 million for the same period of fiscal 2011
  • Gross profit of $0.2 million, compared with gross profit of $4.5 million for the comparable period last year
  • Net loss of $4.0 million, or $(0.54) per share, compared with a net loss of $2.6 million, or $(0.36) per share

 

Forward-Looking Statement Disclaimer 

This press release contains statements relating to our future plans and strategies that are based on our current beliefs and assumptions.  These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "may," "should," and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this release. Additionally, statements concerning future matters are forward-looking statements. 

Although forward-looking statements in this release reflect the good faith judgment of our management, such statements are only based on facts and factors known by us as of the date of this release.  Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended January 31, 2011, and in our other filings with the Securities and Exchange Commission. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.  We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, whether as a result of new information, future events or otherwise, except as required by law.

About Comarco

Based in Lake Forest, Calif., Comarco is a leading provider of universal mobile power products used to power and charge notebook computers, mobile phones, and many other rechargeable mobile devices.  The Company's Web sites can be found at www.comarco.com and www.chargesource.com.

 

COMARCO, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

Three Months Ended

October 31,

 

Nine Months Ended

October 31,

 

2011

 

2010

 

2011

 

2010

Revenue

$         2,252

 

$         5,484

 

$         7,128

 

$       25,781

Cost of revenue

1,926

 

4,765

 

6,932

 

21,322

Gross profit

326

 

719

 

196

 

4,459

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

563

 

1,302

 

2,628

 

3,919

Engineering and support expenses

497

 

775

 

1,471

 

2,563

 

1,060

 

2,077

 

4,099

 

6,482

 

 

 

 

 

 

 

 

Operating loss

(734)

 

(1,358)

 

(3,903)

 

(2,023)

Other loss, net

(26)

 

(32)

 

(28)

 

(74)

Loss from continuing operations before income taxes

(760)

 

(1,390)

 

(3,931)

 

(2,097)

Income tax expense

 

75

 

(2)

 

75

Net loss from continuing operations

(760)

 

(1,315)

 

(3,933)

 

(2,022)

Loss from discontinued operations, net of income taxes

 

 

(21)

 

(601)

Net loss

$          (760)

 

$        (1,315)

 

$        (3,954)

 

$        (2,623)

 

Basic and diluted loss per share:

 

 

 

 

 

 

 

      Net loss from continuing operations

$        (0.10)

 

$        (0.18)

 

$       (0.54)

 

$       (0.28)

      Net loss from discontinued operations

 

 

 

(0.08)

 

$        (0.10)

 

$        (0.18)

 

$       (0.54)

 

$       (0.36)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

      Basic

7,382

 

7,331

 

7,356

 

7,328

      Diluted

7,382

 

7,331

 

7,356

 

7,328

Common shares outstanding

7,388

 

7,344

 

7,388

 

7,344

 

 


 

 

COMARCO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

October 31,

 

January 31,

 

2011

 

2011 (A)

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

      Cash and cash equivalents

$             295

 

$          6,381

      Accounts receivable due from customers, net

2,337

 

3,550

      Accounts receivable due from suppliers, net

692

 

724

      Inventory, net

1,324

 

1,521

      Other current assets

162

 

165

            Total current assets

4,810

 

12,341

Property and equipment, net

149

 

420

Restricted cash

92

 

 

$          5,051

 

$        12,761

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

      Accounts payable

$          3,436

 

$          5,180

      Accrued liabilities

1,570

 

2,762

      Line of credit

 

1,000

            Total current liabilities

5,006

 

8,942

      Deferred rent

59

 

            Total liabilities

5,065

 

8,942

Stockholders' equity (deficit)

(14)

 

3,819

 

$          5,051

 

$        12,761

 

 

 

 

(A)  Derived from the audited consolidated financial statements as of January 31, 2011.

 

 

 

 

 

 

 

 

SOURCE Comarco, Inc.