Comarco Reports Second Quarter Fiscal 2013 Financial Results
LAKE FOREST, Calif., Sept. 17, 2012 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO.PK), today announced its financial results for the second quarter of fiscal 2013 ended July 31, 2012. The Company filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2013 with the Securities and Exchange Commission on Friday, September 14, 2012.
Revenue for the second quarter of fiscal 2013 was $1.7 million compared to $1.9 million for the second quarter of fiscal 2012. Second quarter revenue results reflect consistent Lenovo revenue and the result of our previously announced strategic decisions to exit unprofitable business relationships. For the quarter, the Company reported net income of $0.2 million, or $0.02 per share, which compares to a net loss of $1.9 million, or $(0.26) per share, for the second quarter of the prior fiscal year. Net income for the quarter was significantly and positively impacted by the previously announced settlement with a former supplier to the Company, which allowed us to reverse approximately $1.4 million in previously incurred and accrued product and freight costs and to remove the associated net liabilities payable to this supplier.
For the six months ended July 31, 2012, revenue totaled $3.9 million compared with $4.9 million for the same period of the prior fiscal year. The net loss for the six months ended July 31, 2012 was $0.6 million, or $(0.07) per share, compared with a net loss of $3.2 million, or $(0.43) per share, in the comparable period for the prior year. The year to date net loss was significantly and positively impacted by the supplier settlement discussed above.
"In the second quarter, the Company accomplished several significant objectives in our effort to position Comarco for future growth. As previously announced, we added an experienced executive to our Board of Directors, secured interim financing, and reached a beneficial settlement with a former supplier. In addition, we continued our efforts to develop our direct to consumer selling channel and expect to announce, in the near term, the selection of an experienced marketing advisory group to assist us with the development of our ChargeSource marketing, branding, and sales programs. Our goal is to capitalize on ChargeSource's superior design and leverage our patent protected technologies to build brand awareness and grow our business through increased customer adoption," said Tom Lanni, the Company's President and CEO.
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, 2012, 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. (In thousands, except per share data)
|
|||||||
| Three Months Ended July 31, |
Six Months Ended July 31, |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| Revenue |
$ 1,681 |
$ 1,926 |
$ 3,883 |
$ 4,876 |
|||
| Cost of revenue1 |
(127) |
2,232 |
1,742 |
5,006 |
|||
| Gross profit (loss) |
1,808 |
(306) |
2,141 |
(130) |
|||
| Selling, general and administrative expenses |
897 |
1,114 |
1,401 |
2,065 |
|||
| Engineering and support expenses |
703 |
475 |
1,244 |
974 |
|||
| 1,600 |
1,589 |
2,645 |
3,039 |
||||
| Operating income (loss) |
208 |
(1,895) |
(504) |
(3,169) |
|||
| Other loss, net |
(55) |
(13) |
(55) |
(2) |
|||
| Income (loss) from continuing operations before income taxes |
153 |
(1,908) |
(559) |
(3,171) |
|||
| Income tax expense |
2 |
2 |
2 |
2 |
|||
| Net income (loss) from continuing operations |
151 |
(1,910) |
(561) |
(3,173) |
|||
| Loss from discontinued operations, net of income taxes |
— |
(21) |
— |
(21) |
|||
| Net income (loss) |
$ 151 |
$ (1,931) |
$ (561) |
$ (3,194) |
|||
|
Basic and diluted loss per share: |
|||||||
| Net income (loss) from continuing operations |
$ 0.02 |
$ (0.26) |
$ (0.07) |
$ (0.43) |
|||
| Net loss from discontinued operations |
— |
— |
— |
— |
|||
| $ 0.02 |
$ (0.26) |
$ (0.07) |
$ (0.43) |
||||
| Weighted average common shares outstanding: |
|||||||
| Basic |
7,585 |
7,344 |
7,508 |
7,344 |
|||
| Diluted |
7,608 |
7,344 |
7,508 |
7,344 |
|||
| Common shares outstanding |
7,611 |
7,344 |
7,611 |
7,344 |
|||
1 The cost of revenue for the three and six months ended July 31, 2012 includes a supplier settlement of $1.4 million of previously incurred and accrued product and freight costs.
| COMARCO, INC.
|
|||
| July 31, |
January 31, |
||
| 2012 |
2012 (A) |
||
| (Unaudited) |
|||
| ASSETS |
|||
| Current Assets: |
|||
| Cash and cash equivalents |
$ 1,619 |
$ 908 |
|
| Accounts receivable due from customers, net |
1,674 |
934 |
|
| Accounts receivable due from suppliers, net |
564 |
673 |
|
| Inventory, net |
1,127 |
1,131 |
|
| Other current assets |
53 |
63 |
|
| Total current assets |
5,037 |
3,709 |
|
| Property and equipment, net |
101 |
126 |
|
| Restricted cash |
92 |
92 |
|
| $ 5,230 |
$ 3,927 |
||
| LIABILITIES AND STOCKHOLDERS' DEFICIT |
|||
| Current Liabilities: |
|||
| Accounts payable |
$ 2,834 |
$ 3,912 |
|
| Accrued liabilities |
2,179 |
1,315 |
|
| Loan payable, net of discount |
635 |
— |
|
| Derivative liabilities |
1,365 |
— |
|
| Total current liabilities |
7,013 |
5,227 |
|
| Deferred rent |
44 |
41 |
|
| Total liabilities |
7,057 |
5,268 |
|
| Stockholders' deficit |
(1,827) |
(1,341) |
|
| $ 5,230 |
$ 3,927 |
||
(A) Derived from the audited consolidated financial statements as of January 31, 2012.
SOURCE Comarco, Inc.
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