Comarco Reports Third Quarter Fiscal 2013 Financial Results

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December 14, 2012 07:45 PM EST	Reads:	410

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LAKE FOREST, Calif., Dec. 14, 2012 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO.PK), today announced its financial results for the third quarter of fiscal 2013 ended October 31, 2012. The Company also filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2013 with the Securities and Exchange Commission today.

Revenue for the third quarter of fiscal 2013 was $1.1 million compared to $2.3 million for the third quarter of fiscal 2012. For the quarter, the Company reported a net loss of $2.2 million, or $0.29 per share, which compares to a net loss of $0.8 million, or $(0.10) per share, for the third quarter of the prior fiscal year. The net loss for the quarter included non-cash expenses of $0.9 million related to our previously announced bridge loan. Additionally, the net loss for the quarter includes increased selling, general and administrative expenses and engineering and support expenses of $0.3 million and $0.1 million, respectively, compared to the third quarter of fiscal 2012. The increases in selling, general and administrative expenses and engineering and support expenses are related principally to legal expenses associated with our ongoing litigation.

For the nine months ended October 31, 2012, revenue totaled $5.0 million compared with $7.1 million for the same period of the prior fiscal year. The net loss for the nine months ended October 31, 2012 was $2.8 million, or $(0.37) per share, compared with a net loss of $3.9 million, or $(0.54) per share, in the comparable period for the prior year. The year to date net loss was significantly and positively impacted by the previously announced settlement with a former supplier. Additionally, the year to date net loss includes increased selling, general and administrative expenses of $0.3 million and engineering and support expenses of $0.8 million, respectively, compared to the same period of the prior fiscal year. The increases in selling, general and administrative expenses and engineering and support expenses are related principally to legal expenses associated with our ongoing litigation.

Additionally, as previously announced, subsequent to the third quarter, the Company was awarded a new patent, bringing the total number of patents in its domestic portfolio to 46.

CIO, CTO & Developer Resources

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,
	2012	2011	2012	2011
Revenue	$ 1,135	$ 2,252	$ 5,018	$ 7,128
Cost of revenue¹	929	1,926	2,672	6,932
Gross profit	206	326	2,346	196

Selling, general and administrative expenses	903	563	2,303	2,628
Engineering and support expenses	640	497	1,884	1,471
	1,543	1,060	4,187	4,099

Operating loss	(1,337)	(734)	(1,841)	(3,903)
Interest expense, net	(518)	(26)	(573)	(62)
Loss due to change in fair value of derivative liabilities	(389)	—	(389)	—
Other income, net	—	—	—	34
Loss from continuing operations before income taxes	(2,244)	(760)	(2,803)	(3,931)
Income tax expense	—	—	2	2
Net loss from continuing operations	(2,244)	(760)	(2,805)	(3,933)
Loss from discontinued operations, net of income taxes	—	—	—	(21)
Net loss	$ (2,244)	$ (760)	$ (2,805)	$ (3,954)
Basic and diluted loss per share:
Loss from continuing operations	$ (0.29)	$ (0.10)	$ (0.37)	$ (0.54)
Loss from discontinued operations	—	—	—	—
Net loss	$ (0.29)	$ (0.10)	$ (0.37)	$ (0.54)

Weighted average common shares outstanding:
Basic	7,613	7,382	7,518	7,356
Diluted	7,613	7,382	7,518	7,356
Common shares outstanding	7,615	7,388	7,615	7,388

¹ The cost of revenue for the nine months ended October 31, 2012 includes a supplier settlement of $1.4 million of previously incurred and accrued product and freight costs.

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

	October 31,	January 31,
	2012	2012 ^(A)
	(Unaudited)
ASSETS

Current Assets:
Cash and cash equivalents	$ 560	$ 908
Accounts receivable due from customers, net	1,127	934
Accounts receivable due from suppliers, net	833	673
Inventory, net	1,219	1,131
Other current assets	33	63
Total current assets	3,772	3,709
Property and equipment, net	102	126
Restricted cash	82	92
	$ 3,956	$ 3,927

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
Accounts payable	$ 3,454	$ 3,912
Accrued liabilities	1,583	1,315
Loan payable, net of discount	1,153	—
Derivative liabilities	1,754	—
Total current liabilities	7,944	5,227
Deferred rent	43	41
Total liabilities	7,987	5,268
Stockholders' deficit	(4,031)	(1,341)
	$ 3,956	$ 3,927

^(A) Derived from the audited consolidated financial statements as of January 31, 2012.

SOURCE Comarco, Inc.

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Comarco Reports Third Quarter Fiscal 2013 Financial Results

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