Comarco Reports Fiscal 2012 Fourth Quarter And Full Year Financial Results

News provided by

Apr 30, 2012, 06:00 ET

LAKE FOREST, Calif., April 30, 2012 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO) today announced its financial results for the fourth fiscal quarter and full fiscal year ended January 31, 2012. The Company also filed its Annual Report on Form 10-K for fiscal year 2012 with the Securities and Exchange Commission today.

Fourth Fiscal Quarter Results

Revenue for the fourth quarter of fiscal 2012 was $0.9 million compared with $3.2 million for the fourth quarter of fiscal 2011. The Company reported a net loss of $1.4 million, or $0.18 per share, for the fourth quarter of fiscal 2012, compared with a net loss of $3.4 million, or $0.46 per share, for the fourth quarter of fiscal 2011.

The decrease in revenue was primarily due to a disruption in our supply chain which we resolved in the first quarter of fiscal 2013.

Full Fiscal 2012 Results

Revenue for fiscal 2012 totaled $8.1 million, compared with $28.9 million in fiscal 2011. The Company reported a net loss from continuing operations of $5.3 million, or $0.72 per share, for fiscal 2012 compared with a net loss from continuing operations of $5.4 million, or $0.73 per share, for fiscal 2011.

The Company reported a net loss of $5.3 million, or $0.72 per share, for fiscal 2012, compared with a net loss of $6.0 million, or $0.81 per share, for fiscal 2011.

"While the fiscal 2012 results are disappointing, we accomplished a tremendous amount in the year" said Tom Lanni, the Company's President and CEO. "We significantly restructured Comarco so as to position the company for future growth, and we remain optimistic about the progress we are making to create shareholder value. We recently launched our direct-to-consumer website www.chargesource.com, and we are currently working on innovative and disruptive marketing and branding strategies to highlight how the superior functionality of our ChargeSource® product can help everyone who carries electronic devices. In addition to launching our latest best-in-class power adapter on our new retail website and reducing our operating expenses significantly in fiscal 2012, we settled disputes with former corporate officers and one of our former suppliers, and aggressively pursued patent infringers. Going forward, we will continue to prudently manage our operating expenses and will look to invest appropriately to drive future growth and 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, 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.cmro.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)
	2012	2011	2012	2011
Revenue	$ 941	$ 3,168	$ 8,069	$ 28,949
Cost of revenue	1,329	4,690	8,261	26,012
Gross profit (loss)	(388)	(1,522)	(192)	2,937
Selling, general and administrative expenses	512	1,210	3,140	5,128
Engineering and support expenses	460	588	1,931	3,151
	972	1,798	5,071	8,279
Operating loss	(1,360)	(3,320)	(5,263)	(5,342)
Other income (loss), net	4	(32)	(24)	(106)
Loss from continuing operations before income taxes	$ (1,356)	$ (3,352)	$ (5,287)	$ (5,448)
Income tax benefit (expense)	—	—	(2)	75
Net loss from continuing operations	$ (1,356)	$ (3,352)	$ (5,289)	$ (5,373)
Loss from discontinued operations, net of tax	—	—	(21)	(601)
Net loss	$ (1,356)	$ (3,352)	$ (5,310)	$ (5,974)

Basic and diluted loss per share:
Net loss from continuing operations	$ (0.18)	$ (0.46)	$ (0.72)	$ (0.73)
Net loss from discontinued operations	—	—	—	(0.08)
	$ (0.18)	$ (0.46)	$ (0.72)	$ (0.81)

Weighted average common shares outstanding:
Basic	7,388	7,344	7,365	7,332
Diluted	7,388	7,344	7,365	7,332
Common shares outstanding	7,388	7,344	7,388	7,344


(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, 2012, which was filed with the Securities and Exchange Commission on April 30, 2012.



COMARCO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	January 31,	January 31,
	2012(A)	2011(A)

ASSETS

Current Assets:
Cash and cash equivalents	$ 908	$ 6,381
Accounts receivable, net	1,607	4,274
Inventory, net	1,131	1,521
Other current assets	63	165
Total current assets	3,709	12,341
Property and equipment, net	126	420
Restricted cash	92	—
	$ 3,927	$ 12,761

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:
Accounts payable	$ 3,912	$ 5,180
Accrued liabilities	1,315	2,762
Line of credit	—	1,000
Total current liabilities	5,227	8,942
Deferred rent	41	—
Total liabilities	5,268	8,942
Stockholders' equity (deficit)	(1,341)	3,819
	$ 3,927	$ 12,761

(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, 2012, which was filed with the Securities and Exchange Commission on April 30, 2012.

SOURCE Comarco, Inc.