LAKE FOREST, Calif., April 29, 2011 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO) today announced its financial results for the fourth fiscal quarter and full fiscal year ended January 31, 2011. The Company also filed its Annual Report on Form 10-K for fiscal year 2011 with the Securities and Exchange Commission today.
Fourth Fiscal Quarter Results
Revenue for the fourth quarter of fiscal 2011 was $3.2 million compared with $9.3 million for the fourth quarter of fiscal 2010. The Company reported a net loss from continuing operations of $3.4 million, or $0.46 per share, for the fourth quarter of fiscal 2011, compared with a net loss from continuing operations of $4.3 million, or $0.58 per share, for the fourth quarter of fiscal 2010.
The Company reported a net loss of $3.4 million, or $0.46 per share, for the fourth quarter of fiscal 2011 compared with net loss of $3.5 million, or $0.48 per share, for the fourth quarter of fiscal 2010.
As previously announced on January 31, 2011, Targus has notified the Company that it does not intend to renew the current Strategic Product Development and Supply Agreement, which will terminate on May 4, 2011. As a result of the termination of the Targus Agreement, the Company's fourth quarter results were negatively impacted.
Full Fiscal 2011 Results
Revenue for fiscal 2011 totaled $28.9 million, compared with $26.4 million in fiscal 2010. The Company reported a net loss from continuing operations of $5.4 million, or $0.73 per share, for fiscal 2011 compared with a net loss from continuing operations of $8.2 million, or $1.12 per share, for fiscal 2010.
The Company reported a net loss of $6.0 million, or $0.81 per share, for fiscal 2011, compared with a net loss of $7.4 million, or $1.01 per share, for fiscal 2010.
"We are disappointed with the fiscal 2011 fourth quarter and full year revenue and financial results," said Fredrik Torstensson, who is currently serving as the Company's Interim President and CEO. "We have had several recent executive management changes and are making further critical operational decisions to immediately contain our cash burn rate and position the Company for sustainability and growth. However, we continue to have strong customer relationships with Lenovo and Dell and are working to increase sales with these customers through new products and geographic market expansion. At the same time, we are identifying and pursuing additional retail channels, which we believe will be critical to our future revenue growth. Ultimately, we believe that these actions will help drive us back to profitability."
Forward-Looking Statement Disclaimer
This press release contains statements relating to our future plans, strategies and developments 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 of 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 (In thousands, except per share data) | ||||||||
Three Months Ended January 31, (Unaudited) | Year Ended January 31, (A) | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Revenue | $ 3,168 | $ 9,272 | $ 28,949 | $ 26,425 | ||||
Cost of revenue | 4,690 | 11,328 | 26,012 | 25,090 | ||||
Gross profit (loss) | (1,522) | (2,056) | 2,937 | 1,335 | ||||
Selling, general and administrative expenses | 1,209 | 2,050 | 5,128 | 6,576 | ||||
Engineering and support expenses | 588 | 855 | 3,151 | 3,715 | ||||
1,797 | 2,905 | 8,279 | 10,291 | |||||
Operating loss | (3,320) | (4,961) | (5,342) | (8,956) | ||||
Other loss, net | (32) | (4) | (106) | (1) | ||||
Loss from continuing operations before income taxes | $ (3,351) | $ (4,965) | $ (5,448) | $ (8,957) | ||||
Income tax benefit | - | 697 | 75 | 757 | ||||
Net loss from continuing operations | $ (3,351) | $ (4,268) | $ (5,373) | $ (8,200) | ||||
Income (loss) from discontinued operations, net of tax | - | 776 | (601) | 778 | ||||
Net income (loss) | $ (3,351) | $ (3,492) | $ (5,974) | $ (7,422) | ||||
Basic and diluted income (loss) per share: | ||||||||
Net loss from continuing operations | $ (0.46) | $ (0.58) | $ (0.73) | $ (1.12) | ||||
Net income (loss) from discontinued operations | - | 0.10 | (0.08) | 0.11 | ||||
$ (0.46) | $ (0.48) | $ (0.81) | $ (1.01) | |||||
Weighted average common shares outstanding: | ||||||||
Basic | 7,344 | 7,327 | 7,332 | 7,327 | ||||
Diluted | 7,344 | 7,327 | 7,332 | 7,327 | ||||
Common shares outstanding | 7,344 | 7,327 | 7,344 | 7,327 | ||||
(A) Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2011, which was filed with the Securities and Exchange Commission on April 29, 2011. | ||||||||
COMARCO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||
January 31, | January 31, | |||
2011 (A) | 2010 (A) | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ 6,381 | $ 10,127 | ||
Accounts receivable, net | 4,274 | 11,489 | ||
Inventory, net | 1,521 | 935 | ||
Other current assets | 165 | 280 | ||
Total current assets | 12,341 | 22,831 | ||
Property and equipment, net | 420 | 1,072 | ||
$ 12,761 | $ 23,903 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $ 5,180 | $ 1,134 | ||
Accrued liabilities | 2,762 | 12,212 | ||
Line of credit | 1,000 | 1,000 | ||
Total current liabilities | 8,942 | 14,346 | ||
Tax liability | - | 33 | ||
Deferred rent | - | 63 | ||
Total liabilities | 8,942 | 14,442 | ||
Stockholders' equity | 3,819 | 9,461 | ||
$ 12,761 | $ 23,903 | |||
(A) Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2011, which was filed with the Securities and Exchange Commission on April 29, 2011. | ||||
SOURCE Comarco, Inc.
