Business News
Comarco Reports Second Quarter Fiscal 2009 Financial Results
Friday 12. September 2008 - Comarco, Inc. (NASDAQ:CMRO) today announced its financial results for the second quarter of fiscal 2009 ended July 31, 2008.
As previously announced, Comarco sold its call box business during the second quarter of fiscal 2009. In accordance with Statement of Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the results of the call box business are now presented as discontinued operations for all periods presented below.
Revenue for the second quarter of fiscal 2009 was $7.6 million compared with $2.1 million for the second quarter of fiscal 2008. The Company reported a net loss of $1.6 million, or $(0.23) per share, for the recent second quarter compared with a net loss of $2.2 million, or $(0.30) per share, for the second quarter of the prior fiscal year.
The Company reported a net loss of $2.1 million, or $(0.29) per share, from continuing operations for the recent second quarter compared with a net loss of $3.1 million, or $(0.43) per share, from continuing operations for the second quarter of the prior fiscal year. The Company reported income from discontinued operations of $0.5 million, or $0.06 per share, for the second quarter of fiscal 2009 compared with income from discontinued operations of $0.9 million, or $0.13 per share, for the second quarter of the prior fiscal year.
ChargeSource(R) revenue for the second quarter of fiscal 2009 was $3.2 million, a $2.5 million increase from the $0.7 million reported for the second quarter of fiscal 2008. Revenue from the Company’s wireless test solutions (WTS) business was $4.4 million in the second quarter of fiscal 2009, a $3.0 million increase from the $1.4 million level generated by the WTS business in the second quarter of fiscal 2008.
“The second quarter results reflect the increased sales in both our ChargeSource and WTS businesses,” said Sam Inman, President and Chief Executive Officer of Comarco. “The completion of the sale of our call box business late in the quarter has allowed management to focus its efforts in enhancing the value of the remaining businesses.”
“Our ChargeSource business continues to be driven by our strong relationship with Lenovo. Lenovo is very positive about the ChargeSource power adapter and optimistic about the outlook for our products, but their demand slowed significantly during the summer. To help drive demand for ChargeSource, Lenovo recently introduced several new marketing programs, including website promotions.
“While we had been optimistic that our new power adapter designed for the retail market would be available in time for the holiday season this year, during the quarter, we experienced a delay in its volume production due to a problem with the circuit boards from one of our suppliers. As a result, the launch of the retail product has moved into calendar 2009,” continued Mr. Inman.
“We remain focused on our efforts to reduce costs and time to market for our ChargeSource products. We are making progress and we expect to see the benefit of these actions in enhanced gross margins beginning in the fourth quarter of fiscal 2009.
“During the second quarter, we delivered the remainder of the 41 Symphony(TM) Multi wireless benchmarking systems ordered by AT&T last December. Working with our advisor Pagemill Partners, we are moving steadily forward to implement a plan to maximize the value of our WTS business for our shareholders,” Mr. Inman concluded.
The Company had $14 million in cash at July 31, 2008 and no long-term debt.