COMARCO Inc. (CMRO, Financial) filed Quarterly Report for the period ended 2009-10-31.
Comarco, Inc., through its subsidiary Comarco Wireless Technologies, Inc., is a leading designer of external mobile power adapters used to power and charge notebook computers, mobile phones, BlackBerry smartphones, iPods, and many other portable, rechargeable handheld devices. Its products include AC, DC, and AC/DC power adapters for retail, original equipment manufacturers, and enterprise customers. The company operations consist solely of the operations of Comarco Wireless Technologies, Inc. It offers its products through distributors. Comarco, Inc. is headquartered in Lake Forest, California. Comarco Inc. has a market cap of $19.4 million; its shares were traded at around $2.65 with and P/S ratio of 1.4. Comarco Inc. had an annual average earning growth of 0.9% over the past 5 years.
Revenue for the three and nine months ended October 31, 2009 increased by $4.3 million, or 133 percent, and $6.9 million, or 68 percent, respectively, compared to the corresponding periods of fiscal 2009. The increase is attributable to increases in revenue relating to shipments to Targus commencing during the second quarter of fiscal 2010. In June, we began shipping a 90-watt AC adapter to Targus under the Targus Agreement and revenue for the third quarter of fiscal 2010 also includes initial shipments of the Companys new retail Slim and light power adapter which were completed late in the quarter. The number of units shipped to Lenovo decreased during the
Cost of revenue for the three and nine months ended October 31, 2009 increased by $2.5 million, or 78 percent, and $3.4 million, or 32 percent, respectively, compared to the corresponding periods of fiscal 2009. These increases are primarily attributable to the increase in sales for the three and nine months ended October 31, 2009 compared to the comparable prior year period. Gross margins improved with the introduction of the 90-watt AC product sold to Targus and the Company did not generate a positive gross margin on the sale of its ChargeSource® products until the second quarte
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Comarco, Inc., through its subsidiary Comarco Wireless Technologies, Inc., is a leading designer of external mobile power adapters used to power and charge notebook computers, mobile phones, BlackBerry smartphones, iPods, and many other portable, rechargeable handheld devices. Its products include AC, DC, and AC/DC power adapters for retail, original equipment manufacturers, and enterprise customers. The company operations consist solely of the operations of Comarco Wireless Technologies, Inc. It offers its products through distributors. Comarco, Inc. is headquartered in Lake Forest, California. Comarco Inc. has a market cap of $19.4 million; its shares were traded at around $2.65 with and P/S ratio of 1.4. Comarco Inc. had an annual average earning growth of 0.9% over the past 5 years.
Highlight of Business Operations:
The Company has experienced pre-tax losses from continuing operations during the three and nine months ended October 31, 2009 and 2008 totaling $0.5 million and $2.1 million and $4.0 million and $9.3 million, respectively. Further, the Company did not generate a positive gross margin on the sale of its ChargeSource® products until the second quarter of fiscal 2010. The Companys future is highly dependent on its ability to sell its products at a profit and its ultimate return to overall profitability. To accomplish this, the Company must increase the sales volumes of its current and newly designed ChargeSource® products to appropriately absorb fixed administrative and contract manufacturing overhead. The Company believes that it has begun to address this concern with its Strategic Product Development and Supply Agreement with Targus Group International, Inc. (Targus) dated March 16, 2009, pursuant to which the Company began shipment of ChargeSource® products to Targus during the second quarter of fiscal 2010. Further, the Company has continued its negotiations with its contract manufacturers and other suppliers to reduce unit costs. Although certain costs reductions have been achieved, the Company continues to vigilantly compare component prices and availability among approved vendors in its efforts to achieve its profitability objectives, as the pricing, availability and sourcing of components remain challenging as can be the case with many technology products. The inability of the Company to successfully achieve these objectives will have a material adverse effect on the Companys operations and financial condition.Revenue for the three and nine months ended October 31, 2009 increased by $4.3 million, or 133 percent, and $6.9 million, or 68 percent, respectively, compared to the corresponding periods of fiscal 2009. The increase is attributable to increases in revenue relating to shipments to Targus commencing during the second quarter of fiscal 2010. In June, we began shipping a 90-watt AC adapter to Targus under the Targus Agreement and revenue for the third quarter of fiscal 2010 also includes initial shipments of the Companys new retail Slim and light power adapter which were completed late in the quarter. The number of units shipped to Lenovo decreased during the
Cost of revenue for the three and nine months ended October 31, 2009 increased by $2.5 million, or 78 percent, and $3.4 million, or 32 percent, respectively, compared to the corresponding periods of fiscal 2009. These increases are primarily attributable to the increase in sales for the three and nine months ended October 31, 2009 compared to the comparable prior year period. Gross margins improved with the introduction of the 90-watt AC product sold to Targus and the Company did not generate a positive gross margin on the sale of its ChargeSource® products until the second quarte
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