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8-K - FORM 8-K - COMARCO INC | a56534e8vk.htm |
EX-99.2 - EX-99.2 - COMARCO INC | a56534exv99w2.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
COMARCO REPORTS FIRST QUARTER FISCAL 2011
FINANCIAL RESULTS
FINANCIAL RESULTS
LAKE FOREST, Calif., June 14, 2010 Comarco, Inc. (NASDAQ: CMRO), a leading provider of
innovative mobile power solutions through its ChargeSource® line of multi-function
universal mobile power products, today announced financial results for the first quarter of fiscal
2011 ended April 30, 2010.
Revenue for the first quarter of fiscal 2011 was $7.5 million, an increase of 272% compared with
$2.0 million in revenue for the first quarter of fiscal 2010. The Company reported a net loss for
the recent first fiscal quarter of $0.7 million, or ($0.10) per share. This compared with a net
loss of $2.8 million, or ($0.39) per share, in the first quarter of fiscal 2010.
Our first quarter financial results reflect the ramp up of sales of our most recent product
platform, Manhattan, to Targus, said Sam Inman, President and Chief Executive Officer of Comarco.
The Targus demand for the Manhattan line of products continues to grow, and we are in the initial
stages of qualifying another contract manufacturer for these products in order to increase
capacity. On the OEM side of our business, we began shipping the 90-watt auto-air DC adapter to
Dell in late May, and we continue to ship our Ultra Slim and Light product to Lenovo.
We remain confident about the outlook for strong revenue growth and improved bottom line in fiscal
2011. Momentum for ChargeSource remains strong and we are focused on increasing its volumes,
revenue and market share. We are also working to expand our product portfolio through internal
development and in conjunction with other partners. Finally, we continue working on improvements
to our supply chain that should allow us to improve our margins in the future. We are on track
with our plans and continue to expect revenue growth in fiscal 2011 of 25% to 30% compared to
fiscal 2010, concluded Mr. Inman.
The Company had approximately $9.0 million in cash at April 30, 2010 and borrowings against its
credit facility in the amount of $1.0 million as of April 30, 2010.
Forward-Looking Information
This news release includes forward-looking statements that are subject to risks, uncertainties,
and other factors that could cause actual results or outcomes to differ materially from those
contemplated by the forward-looking statements. Forward-looking statements in this release are
generally identified by words such as believes, anticipates, plans, expects, will,
would, and similar expressions that are intended to identify forward-looking statements.
Forward-looking statements include statements regarding expected revenue growth and an improved
bottom line, statements concerning the momentum for ChargeSource, statements regarding anticipated
improvements to our supply chain, and all other statements herein not of a historical nature. Many
important factors may cause the Companys actual results to differ materially from those discussed
in any such forward-looking statements, including but not limited to the impact of general
economic and retail uncertainty and perceived or actual weakening of economic conditions on
customers and prospective customers spending on our products; quarterly and seasonal fluctuations
in our revenue or other operating results; fluctuations in the demand for our products and the fact
that a significant portion of our revenue is
25541 Commercentre Dr. Suite 250 Lake Forest, CA 92630 U.S.A. Office: (949) 599-7400 Fax: (949)599-1415
derived from a limited number of customers; additional costs which might be incurred related to our
previously announced product recall beyond the reserves established for the recall; unexpected
difficulties and delays associated with our efforts to obtain cost reductions and achieve higher
sales volumes for our ChargeSource® products; failure to accurately forecast customer demand and
the risk that our customers may cancel their orders, change production quantities or delay
production; the fact that our products are complex and have short life cycles and the average
selling prices of our products will likely decrease over their sales cycles; disruptions in our
relationships with our suppliers; failure to meet financial expectations of analysts and investors,
including failure from significant reductions in demand from earlier anticipated levels; risks
related to market acceptance of our products and our ability to meet contractual and technical
commitments with our customers; activities by us and others regarding protection of intellectual
property; competitors release of competitive products and other actions; factors that adversely
impact our cash and cash equivalent balances; and costs and potential adverse determinations
arising out of adverse proceedings or litigation. Although we believe that the assumptions
underlying the forward-looking statements are reasonable, any of the assumptions could prove
inaccurate and, therefore, we cannot assure that the results contemplated in forward-looking
statements will be realized in the timeframe anticipated or at all. Further information on
potential factors that could affect financial results are included in risks detailed from time to
time in the Companys Securities and Exchange Commission filings, including without limitation the
annual report on Form 10-K for the year ended January 31, 2010.
Although the Company believes that the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity, performance, or achievements.
Moreover, neither any other person nor the Company assumes responsibility for the accuracy and
completeness of the forward-looking statements. The Company undertakes no obligation to revise or
update publicly any forward-looking statements for any reason.
Earnings Conference Call
Comarco will host a conference call to discuss the financial results for the fiscal first quarter
ended April 30, 2010 and current corporate developments at 4:30 p.m. Eastern Time (1:30 p.m.
Pacific Time) today, June 14, 2010. Dial (877) 941-2928 to listen to the call. A live webcast
will also be made available at www.comarco.com. A replay will be available approximately one hour
after the call for 7 days following the calls conclusion. To access the replay, dial (800)
406-7325 using passcode 4316832#. A Web archive will be made available at www.comarco.com for 90
days following the calls conclusion.
About Comarco
Based in Lake Forest, Calif., Comarco is a leading provider of innovative mobile power
solutions through its ChargeSource line of multi-function universal mobile power products
which can simultaneously power and charge multiple devices such as notebook computers, mobile
phones, BlackBerry® smartphones, iPods®, and many other rechargeable
mobile devices. More information about Comarcos product lines can be found at
www.comarco.com and www.chargesource.com.
Company Contacts: | Investor Contact: | |||
Sam Inman |
Winston Hickman | Doug Sherk/Jenifer Kirtland | ||
President and CEO |
VP and CFO | EVC Group, Inc. | ||
Comarco, Inc. |
Comarco, Inc. | (415) 896-6820 | ||
(949) 599-7444 |
(949) 599-7446 | dsherk@evcgroup.com | ||
saminman@comarco.com |
whickman@comarco.com | jkirtland@evcgroup.com |
25541 Commercentre Dr. Suite 250 Lake Forest, CA 92630 U.S.A. Office: (949) 599-7400 Fax: (949)599-1415
COMARCO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended | ||||||||
April 30, | ||||||||
2010 | 2009 | |||||||
Revenue |
$ | 7,514 | $ | 2,022 | ||||
Cost of sales |
5,912 | 2,336 | ||||||
Gross profit (loss) |
1,602 | (314 | ) | |||||
Selling, general and administrative expenses |
1,407 | 1,686 | ||||||
Engineering and support expenses |
902 | 870 | ||||||
2,309 | 2,556 | |||||||
Operating loss |
(707 | ) | (2,870 | ) | ||||
Other expense, net |
(19 | ) | (10 | ) | ||||
Loss from continuing operations before income taxes |
(726 | ) | (2,880 | ) | ||||
Income tax benefit |
| | ||||||
Net loss from continuing operations |
(726 | ) | (2,880 | ) | ||||
Income (loss) from discontinued operations, net of income taxes |
(8 | ) | 39 | |||||
Net loss |
$ | (734 | ) | $ | (2,841 | ) | ||
Basic and diluted loss per share: |
||||||||
Net loss from continuing operations |
$ | (0.10 | ) | $ | (0.39 | ) | ||
Net income from discontinued operations |
| | ||||||
$ | (0.10 | ) | $ | (0.39 | ) | |||
Weighted average common shares outstanding: |
||||||||
Basic |
7,327 | 7,327 | ||||||
Diluted |
7,327 | 7,327 | ||||||
Common shares outstanding: |
7,327 | 7,327 | ||||||
25541 Commercentre Dr. Suite 250 Lake Forest, CA 92630 U.S.A. Office: (949) 599-7400 Fax: (949)599-1415
COMARCO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, | January 31, | |||||||
2010 | 2010(A) | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 8,984 | $ | 10,127 | ||||
Accounts receivable due from customers and suppliers, net |
11,372 | 11,489 | ||||||
Inventory, net |
1,180 | 935 | ||||||
Other current assets |
527 | 280 | ||||||
Total current assets |
22,063 | 22,831 | ||||||
Property and equipment, net |
950 | 1,072 | ||||||
$ | 23,013 | $ | 23,903 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 1,641 | $ | 1,134 | ||||
Accrued liabilities |
11,525 | 12,212 | ||||||
Line of credit |
1,000 | 1,000 | ||||||
Total current liabilities |
14,166 | 14,346 | ||||||
Tax liability |
33 | 33 | ||||||
Deferred rent |
32 | 63 | ||||||
Total liabilities |
14,231 | 14,442 | ||||||
Stockholders equity |
8,782 | 9,461 | ||||||
$ | 23,013 | $ | 23,903 | |||||
(A) | Derived from the audited consolidated financial statements as of January 31, 2010. |
25541 Commercentre Dr. Suite 250 Lake Forest, CA 92630 U.S.A. Office: (949) 599-7400 Fax: (949)599-1415