COMARCO Inc. (CMRO, Financial) filed Annual Report for the period ended 2010-01-31.
Comarco Inc. has a market cap of $18.46 million; its shares were traded at around $2.52 with and P/S ratio of 1.37.
The aggregate purchase price paid to Comarco in connection with the transaction was $12,750,000 in cash, with $1,275,000 of the proceeds placed in escrow for one year from the closing date as security for general indemnification rights, which is the maximum indemnification amount that can be claimed by the buyer. The Company recorded a pre-tax gain on the sale of its WTS business of $5.9 million during the fourth quarter of fiscal 2009. On January 19, 2010 proceeds placed in escrow were released in their entirety, and the Company recorded an additional pre-tax gain on the sale of $1,276,000. This resulted in a total pre-tax gain on the sale of the WTS business of $7.2 million of which $1.3 million was recorded in fiscal 2010.
Late in the fourth quarter of fiscal 2008, we began volume production of a small form factor 90-watt AC/DC standalone power adapter designed to the stringent specifications of Lenovo Information Products Co., Ltd. (Lenovo), a leading notebook computer OEM. During fiscal 2010 and 2009, we shipped a total of 86,000 and 222,000 of these units to Lenovo, respectively. Commencing late in the third quarter of fiscal 2010, we began shipments to Lenovo of our newest generation adapter, the Slim and Light product, and we shipped a total of 53,000 units to Lenovo. Revenues generated from sales to Lenovo for fiscal years 2010 and 2009 totaled $7.4 million and $11.0 million, or 28 percent and 82 percent of revenues, respectively.
During fiscal 2010, shipments to Targus, our exclusive retail distributor, totaled $18.8 million or 71 percent of total revenue. In fiscal 2010 and 2009, shipments to Lenovo, an OEM customer, totaled $7.4 million and $11.0 million or 28 percent and 82 percent of total revenue, respectively. In fiscal 2009, Kensington, a former distributor of our ChargeSource® products, accounted for revenue totaling $1.0 million, or 7 percent of total revenue. For more information regarding our customers, see Note 4 of the Notes to the Consolidated Financial Statements included in Item 8 of this report.
We sell our products in markets that are characterized by rapid technology changes, frequent new product introductions, and evolving technology standards. Accordingly, we devote significant resources to designing and developing new and enhanced products that can be manufactured cost effectively and sold at competitive prices. During fiscal 2010 and 2009, we incurred approximately $3.7 million and $2.8 million, respectively, in research and development expenses. To focus these efforts, we strive to maintain close relationships with our customers and develop products that meet their needs.
We have experienced operating losses in the past, and we expect that we will incur additional operating losses in the future unless we achieve higher sales volume. We incurred pre-tax losses from continuing operations of $9.0 million and $13.1 million in fiscal 2010 and 2009, respectively. Our ability to achieve or sustain profitability is based on a number of factors, many of which are out of our control, including the demand for our products, costs of components used in our products, lead times on certain critical semi-conductor components, and the cost of manufacturing overhead charged by our Contract Manufacturers (CMs).
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Comarco Inc. has a market cap of $18.46 million; its shares were traded at around $2.52 with and P/S ratio of 1.37.
Highlight of Business Operations:
Through July 10, 2008, the Company designed, manufactured, installed, and maintained emergency call boxes for state and local governmental agencies through its Call Box business. On July 10, 2008, the Company executed an asset purchase agreement to sell the assets of its Call Box business for $2.7 million in cash. The transaction closed on July 10, 2008 and accordingly, the Company recorded a pre-tax gain on the sale in the amount of $0.5 million during fiscal 2009.The aggregate purchase price paid to Comarco in connection with the transaction was $12,750,000 in cash, with $1,275,000 of the proceeds placed in escrow for one year from the closing date as security for general indemnification rights, which is the maximum indemnification amount that can be claimed by the buyer. The Company recorded a pre-tax gain on the sale of its WTS business of $5.9 million during the fourth quarter of fiscal 2009. On January 19, 2010 proceeds placed in escrow were released in their entirety, and the Company recorded an additional pre-tax gain on the sale of $1,276,000. This resulted in a total pre-tax gain on the sale of the WTS business of $7.2 million of which $1.3 million was recorded in fiscal 2010.
Late in the fourth quarter of fiscal 2008, we began volume production of a small form factor 90-watt AC/DC standalone power adapter designed to the stringent specifications of Lenovo Information Products Co., Ltd. (Lenovo), a leading notebook computer OEM. During fiscal 2010 and 2009, we shipped a total of 86,000 and 222,000 of these units to Lenovo, respectively. Commencing late in the third quarter of fiscal 2010, we began shipments to Lenovo of our newest generation adapter, the Slim and Light product, and we shipped a total of 53,000 units to Lenovo. Revenues generated from sales to Lenovo for fiscal years 2010 and 2009 totaled $7.4 million and $11.0 million, or 28 percent and 82 percent of revenues, respectively.
During fiscal 2010, shipments to Targus, our exclusive retail distributor, totaled $18.8 million or 71 percent of total revenue. In fiscal 2010 and 2009, shipments to Lenovo, an OEM customer, totaled $7.4 million and $11.0 million or 28 percent and 82 percent of total revenue, respectively. In fiscal 2009, Kensington, a former distributor of our ChargeSource® products, accounted for revenue totaling $1.0 million, or 7 percent of total revenue. For more information regarding our customers, see Note 4 of the Notes to the Consolidated Financial Statements included in Item 8 of this report.
We sell our products in markets that are characterized by rapid technology changes, frequent new product introductions, and evolving technology standards. Accordingly, we devote significant resources to designing and developing new and enhanced products that can be manufactured cost effectively and sold at competitive prices. During fiscal 2010 and 2009, we incurred approximately $3.7 million and $2.8 million, respectively, in research and development expenses. To focus these efforts, we strive to maintain close relationships with our customers and develop products that meet their needs.
We have experienced operating losses in the past, and we expect that we will incur additional operating losses in the future unless we achieve higher sales volume. We incurred pre-tax losses from continuing operations of $9.0 million and $13.1 million in fiscal 2010 and 2009, respectively. Our ability to achieve or sustain profitability is based on a number of factors, many of which are out of our control, including the demand for our products, costs of components used in our products, lead times on certain critical semi-conductor components, and the cost of manufacturing overhead charged by our Contract Manufacturers (CMs).
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