COMARCO Announces Fiscal Year 2000 Results; Two Major Contracts for Testing Services Signed With National Wireless Carriers, New ChargeSource Nearing Introduction.Business Editors and High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--March 21, 2000 COMARCO Inc. (Nasdaq:CMRO CMRO Current Medical Research and Opinion (journal) CMRO Concerned Motorcycle Riders of Ohio CMRO Canadian Mud Racing Organization CMRO Certified Medical Review Officer CMRO Complex Maintenance, Repair & Overhaul ) Tuesday reported revenue and net income for the fourth quarter and for fiscal year ended Jan. 31, 2000. For continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the year, net income was $3.6 million or $0.74 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) on revenue of $39.2 million. On the same basis last year, net income was $4.0 million or $0.77 per share (diluted) on revenue of $34.0 million. COMARCO's continuing operations consist solely of its wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. subsidiary, Comarco Wireless Technologies Inc. (CWT cwt 112 pounds avoirdupois weight. ). Net income from continuing operations for the fourth quarter of FY2000 was $0.9 million or $0.20 per share (diluted) on revenue of $10.5 million. In last year's fourth quarter, revenue was $10.9 million, net income was $1.7 million and earnings per share (diluted) were $0.33. For discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , net income for the year was a loss of $433,000 or ($0.10) per share (diluted). Net income from discontinued operations for the fourth quarter was $672,000 or $0.14 per share (diluted) versus $0.07 last year. Fourth quarter and fiscal year 2000 revenue and net income from continuing operations were effected by a major product transition to the all new X-series test and measurement platform. The first of the X-50 product family (CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. ) was released in early March and is now shipping. The X-50 platform will support all multiple access technologies; CDMA, IS-136, GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. and iDEN. During FY2000, the company increased expenditures to build engineering and operations infrastructures needed to support expected rapid growth in its Test and Measurement products and Quality of Service information service and in product development for the next generation ChargeSource(TM) product. COMARCO will host an investors conference call, led by COMARCO's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Don M. Bailey, and by Tom Franza, CWT's President and CEO, on March 21 at 11 AM PST PST Paroxysmal supraventricular tachycardia, see there . To participate, call 800/816-3032, passcode No. 81625, approximately 5 minutes before the scheduled conference. A replay of the call will be available for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock , beginning 5 PM, EST EST electroshock therapy. EST abbr. electroshock therapy , March 21. To hear the replay, call 800/577-6980, passcode 18060. The conference call will also be available on the Internet at Vcall.com: http://www.vcall.com/NASApp/VCall/EventPage?ID=7507. Last year, COMARCO decided to focus on its wireless products and services. Therefore, it began a divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). program aimed at selling its non-core operations. Bailey, Chairman, CEO and President of COMARCO commented, "Yesterday we closed the third transaction of six planned divestiture deals and we have made good progress on the other three. We are committed to completing this transition, redeploying our capital on the wireless communications business, thereby enhancing shareholder value." Franza, President and Chief Executive Officer of CWT, announced a number of significant events: "We have developed and deployed a large scale mobile testing network and are now providing this service nationally. This testing is aimed at the collection and analysis of information related to the quality of service as experienced by wireless phone users. With our industry leading data collection and analysis system, skilled engineering teams and mobile testing infrastructure, we are well positioned to provide essential information to wireless service providers, infrastructure vendors and other wireless industry participants. Two major national wireless service providers have contracted with CWT for Quality of Service information. We are in discussions with several additional potential customers and expect continued growth for our wireless information service." "The company's newly announced products for the wireless carrier infrastructure, test and measurement marketplace, the X-series and RAP Central revenue assurance platform, are being released soon." "Recently, we began a direct marketing program for ChargeSource, our patented universal AC power adapter An external power supply for laptop computers and just about every portable or semi-portable electronic device on the market. Also called an "AC adapter," it contains a rectifier to convert AC current to DC and a transformer to convert voltage from 120 down to 9, 12, 15 or whatever is and recharger, reaching the business traveler through print ads and the Internet. The next generation ChargeSource product is nearing completion. We recently received preliminary approval of the power converter (1) A device that changes one set of codes, modes, sequences or frequencies to a different set. See A/D converter. (2) A device that changes current from 60Hz to 50Hz and vice versa. from UL and are proceeding aggressively toward a product introduction within a few months. Introduction of the next generation product expands the available market coverage to include essentially all IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Toshiba, Compaq, Dell, Apple and other popular portable computers as well as all leading cell phones, Palm and handheld computers A computing device that can be easily held in one hand while the other hand is used to operate it. The Palm devices are a popular example. See Palm, smartphone and palmtop. and portable printers." "Our emergency roadside callbox and fixed wireless applications products had another very good year even as we continue to invest aggressively in a number of large opportunities such as the Pennsylvania Turnpike The Pennsylvania Turnpike is a toll highway system operated by the Pennsylvania Turnpike Commission in the state of Pennsylvania, USA. The turnpike system encompasses 532 miles (855 km) in three distinct sections. Authority, and the states of Texas, Louisiana, Florida, Georgia, Nevada, Utah and Colorado. We are well into the process of negotiating multiyear agreements for the maintenance and operation of the California installed base. The first two contracts worth approximately $5 million over 5 years have been concluded. Additionally, we have signed an upgrade contract with Orange County, California Orange County is a county in Southern California, United States. Its county seat is Santa Ana. According to the 2000 Census, its population was 2,846,289, making it the second most populous county in the state of California, and the fifth most populous in the United States. and a pilot contract with the state of Pennsylvania that together are valued at approximately $1.7 million." "As shown by our positive momentum from the developments and progress of our wireless communications products and services, combined with our recent investments in our internal infrastructure, we can expect to continue to expand our customer base with our exceptional product and service offerings," Franza concluded. "Our strong financial position allowed us to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. 240,000 shares of our stock during this last year. During the course of our seven-year buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program, we have purchased over 1.4 million shares and have over 500,000 shares remaining authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to repurchase," commented Bailey. "We expect to continue to pursue actions which will further enhance shareholder value." For further information contact Don Bailey at 714/796-1800, Tom Franza at 949/599-7440 or the Shareholder Information Office at 714/796-1818. The company's Web sites can be found at www.comarco.com and www.chargesource.com. COMARCO Inc. (Nasdaq:CMRO) provides test and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. products and services for wireless telephone carriers, systems for the wireless transmission of voice and data, and advanced technology products for portable wireless appliances such as notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. , cellular telephones and personal organizers. Except for historical information contained herein, the matters set forth in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the level of sales of our wireless communications products; timely and cost-effective product development, foreign marketing, the level of competition for the company's products and services, our ability to meet contractual commitments with our customers, and the ability to meet the technical requirements of our customers. The company's ability to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the divestiture and the period necessary to complete any sale is subject to certain risks and uncertainties including receiving acceptable offers from qualified buyers and obtaining necessary approvals. Investors are also directed to consider a more detailed description of risks and uncertainties facing the company discussed in documents filed by the company with the Securities and Exchange Commission. ChargeSource is a trademark of Comarco Wireless Technologies Inc. All other company names referenced herein are trademarks or registered trademarks of their respective companies.
COMARCO Inc. (Nasdaq:CMRO)
Interim Statement Financial Data
Statement of Income
(Dollars in thousands Except Per Share Data)
Three Months Ended Year Ended
Jan. 31 Jan. 31 Jan. 31 Jan. 31
2000 1999 2000 1999
Revenue 10,450 10,907 39,224 34,004
Cost of goods sold 5,561 4,896 20,794 15,042
Gross profit 4,889 6,011 18,430 18,962
Selling, general &
administrative 2,482 2,610 9,203 9,526
Engineering and
support 997 824 3,808 3,480
Operating income 1,410 2,577 5,419 5,956
Net interest income 50 45 274 298
Minority interest
in earnings (8) 0 (46) 0
Income before
income taxes 1,452 2,622 5,647 6,254
Income taxes 530 957 2,061 2,283
Tax rate 36.5% 36.5% 36.5% 36.5%
Net income from
continuing ops $922 $1,665 $3,586 $3,971
Net income from
discontinued ops 672 321 (433) 1,712
Net income $1,594 $1,986 $3,153 $5,683
Earnings per share
from continuing
operations
Basic $0.21 $0.38 $0.82 $0.86
Diluted $0.20 $0.33 $0.74 $0.77
Earnings per share
from discontinued
operations
Basic $0.16 $0.07 ($0.10) $0.37
Diluted $0.14 $0.07 ($0.10) $0.36
Earning per share
Basic $0.37 $0.45 $0.72 $1.23
Diluted $0.34 $0.40 $0.64 $1.13
Weighted average
shares of common
stock
Basic 4,316,000 4,442,000 4,381,000 4,608,000
Diluted 4,726,000 5,000,000 4,850,000 5,123,000
Selected Balance Jan. 31 Jan. 31 Jan. 31
Sheet Items 2000 1999 1998
Cash and short-term investments $8,785 $5,995 $7,604
Net accounts receivable 6,680 11,113 8,980
Inventory 4,852 4,157 5,247
Net assets held for sale 9,177 10,990 8,756
Current assets 33,480 34,704 32,341
Long-term investments
(highly liquid) 0 526 2,364
Property and equipment, net 2,763 1,948 1,847
Capitalized software development 5,839 4,185 3,131
Intangible assets, net 2,222 1,545 694
Total assets 44,376 43,001 40,528
Short-term debt 0 0 0
Current liabilities 10,023 9,872 8,578
Long-term debt 0 0 0
Total shareholders' equity 31,754 31,202 30,470
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