COMARCO Earnings From Continuing Operations Up Over 30%.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--Nov. 23, 1999-- 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 ) announced today results for its third quarter of fiscal year 2000 ended October 31, 1999. Net income from 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 in the quarter increased over 30% to $1.5 million or $.31 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. ) compared to $1.1 million or $.23 per share (diluted) reported in last year's third quarter. Revenues for the quarter from continuing operations increased 42% to $12.0 million compared to $8.4 million last year. For the first nine months of this year, COMARCO's net income from continuing operations was $2.7 million or $.54 per share (diluted) on revenues of $28.8 million. For the same period last year from continuing operations, the Company earned $2.3 million or $.44 per share (diluted) on $23.1 million of revenue. Pursuant to Comarco's previously announced plans to strengthen the Company's focus in the 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. sector, the Company has established its plan to sell its information technology staffing services business segment. Therefore, the financial results for this segment are reported as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . COMARCO intends to use the proceeds from any sale to invest in growth initiatives for its core wireless communications business. Don M. Bailey, Chairman, 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. and President of COMARCO commented, "We anticipate that this 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). and focusing of the Company's resources will result in enhanced shareholder value. We currently expect the selling process to be completed in the first quarter of next year." Results from discontinued operations for the quarter were revenues of $12.7 million, net loss of $1.9 million or $.42 per share (diluted). The loss is a result of the establishment of a $2.9 million reserve related to an unresolved Not completed; not finished; not linked together. See resolve. dispute on fixed price contracts with one customer. Management believes that this contingency will not affect the selling of the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses. For nine months the discontinued operations had revenues of $39.9 million, net loss of $1.1 million or $.24 per share (diluted). Combined results for the quarter from continuing and discontinued operations were revenues of $24.7 million, net loss of $0.4 million or $.11 per share (diluted). For the first nine months of the fiscal year, combined results from continuing and discontinued operations were revenues of $68.7 million, net income of $1.6 million and earnings per share of $.30 (diluted). Commenting on the Company's continuing wireless communications products business, Mr. Bailey stated, "As is typical of our second half, sales for our test and measurement products are increasing from the first half of the year. This contributed to our record quarterly sales for Comarco Wireless. As has been reported widely in the financial and industry press, the wireless industry is currently experiencing significant quality of service problems. This industry condition has led to increased demand for our existing and new equipment and recently introduced related services. "Our call box business experienced increased revenues in the quarter with the ramp-up of the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Santa Cruz Santa Cruz, city, United States Santa Cruz (săn`tə kr  z), city (1990 pop. 49,040), seat of Santa Cruz co., W Calif., on the north shore of Monterey Bay; inc. 1866. and Sacramento area contracts. These contracts should be substantially
completed by the end of our fiscal year. Last week we announced a new
$12 million contract to continue to provide maintenance for the next ten
years for call boxes in the greater San Francisco area."ChargeSource(TM), our new universal AC-DC 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 , is gaining acceptance during its initial market trial. Using patented technology, ChargeSource(TM) can power and recharge re·charge tr.v. re·charged, re·charg·ing, re·charg·es To charge again, especially to reenergize a storage battery. re 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. and cellular telephones, thus simplifying the needs of the traveling professional. We continued to supply units during the quarter to retail and other channels. During December we will initiate a market test targeting a major metropolitan airport and take orders from an 800 number and through our website www.chargesource.com. "During the quarter we repurchased 125,000 shares of our stock, bringing this year's repurchases to 240,000 shares. We have repurchased over 1.4 million shares during 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 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 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. ." 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. COMARCO, Inc. (Nasdaq:CMRO) provides wireless communications products, including advanced wireless network evaluation equipment to the cellular and PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. industries worldwide, emergency motorist aid systems to state and local governments, and power accessories for portable electronic devices through consumer and direct channels. -0-
COMARCO, Inc (Nasdaq:CMRO)
INTERIM STATEMENT FINANCIAL DATA
STATEMENT OF INCOME
(Dollars in thousands Except Per Share Data)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
October 31 October 31 October 31 October 31
STATEMENT OF INCOME 1999 1998 1999 1998
Revenue 11,959 8,435 28,774 23,097
Cost of goods sold 6,258 3,508 15,233 10,146
----------- ----------- ----------- -----------
Gross profit 5,701 4,927 13,541 12,951
Selling, general &
administrative 2,538 2,539 6,721 6,916
Engineering and
support 848 653 2,811 2,656
----------- ----------- ----------- -----------
Operating income 2,315 1,735 4,009 3,379
Net interest income 47 40 224 253
Minority interest
in earnings (29) (38)
----------- ----------- ----------- -----------
Income before
income taxes 2,333 1,775 4,195 3,632
Income taxes 851 648 1,531 1,326
Tax rate 36.5% 36.5% 36.5% 36.5%
Net income from
continuing ops $ 1,482 $ 1,127 $ 2,664 $ 2,306
Net income (loss)
from discontinued
ops (1,894) 448 (1,105) 1,391
----------- ----------- ----------- -----------
Net income (loss) ($ 412) $ 1,575 $ 1,559 $ 3,697
=========== =========== =========== ===========
Earnings per share
from continuing
operations
Basic $ 0.34 $ 0.25 $ 0.60 $ 0.49
Diluted $ 0.31 $ 0.23 $ 0.54 $ 0.44
Earnings (loss) per
share from
discontinued
operations
Basic ($ 0.43) $ 0.10 ($ 0.25) $ 0.30
Diluted ($ 0.42) $ 0.09 ($ 0.24) $ 0.29
Earnings (loss)
per share
Basic ($ 0.09) $ 0.35 $ 0.35 $ 0.79
Diluted ($ 0.11) $ 0.32 $ 0.30 $ 0.73
Weighted average
shares of common
stock
Basic 4,360,000 4,562,000 4,403,000 4,664,000
Diluted 4,787,000 4,998,000 4,889,000 5,191,000
----------------------------------------------------------------------
----------------------------------------------------------------------
SELECTED BALANCE October 31 January 31 October 31
SHEET ITEMS 1999 1999 1998
Cash and short-term investments $ 5,874 $ 5,995 $ 4,093
Net accounts receivable 9,785 11,518 9,420
Inventory 4,954 4,157 5,102
Net assets held for sale 9,330 10,454 11,256
Current assets 32,900 34,583 32,038
Long-term investments (highly liquid) 525 424
Property and equipment, net 2,456 1,948 2,005
Capitalized software development 5,286 4,185 4,164
Intangible assets, net 1,328 1,544 1,607
Total assets 42,097 42,879 40,333
Short-term debt
Current liabilities 10,581 9,750 9,612
Long-term debt
Total shareholders' equity 29,281 31,201 29,036
----------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion