COMARCO Reports Strong Second Quarter Results.Business Editors Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Aug. 24, 2000 Second Quarter Highlights -- 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 -- 127% increase in net income to $1.3 million, excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs -- 125% increase in earnings per share to $0.27, excluding one-time charge for severance costs -- 33% increase in revenues to $12.0 million -- Company nearing completion of plan to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its non-wireless businesses 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 ) Thursday Thursday: see week. announced financial results for the second quarter ended July July: see month. 31, 2000. As previously announced, COMARCO is nearing completion of the plan to divest its non-wireless businesses. Accordingly, the company'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. Continuing Operations COMARCO reported net income from continuing operations, excluding a one-time charge for severance costs, increased 127% for the second quarter of fiscal year 2001 over the corresponding quarter of the prior fiscal year, to $1.3 million from $573,000 and, on a per share basis, to $0.27 per share from $0.12 per share, a 125% increase. Including the one-time charge, net income from continuing operations was $473,000 and, on a per share basis was $0.09 per share for the second quarter ended July 31, 2000. Additionally, the company reported a 33% increase in revenues for the second quarter over the corresponding quarter of the prior fiscal year, to $12.0 million from $9.0 million. Increased sales of the company's Test and Measurement products and its new Information Services See Information Systems. business were the primary drivers of the second quarter increases in both net income from continuing operations and revenues. "We are very pleased with our second quarter results," said Tom Franza, COMARCO president and chief executive officer. "Our strategy of identifying and anticipating the needs of the wireless communications industry for products and services is producing strong financial results. The successful execution of this strategy is evidenced by the growth in our Information Services business and industry-wide acceptance of our Test and Measurement equipment." During the second quarter ended July 31, 2000 and in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of its non-wireless businesses, COMARCO was required to record a charge to continuing operations for costs related to severance agreements Noun 1. severance agreement - an agreement on the terms on which an employee will leave agreement, understanding - the statement (oral or written) of an exchange of promises; "they had an agreement that they would not interfere in each other's business"; "there was for the company's outgoing corporate staff. Although the obligations under the severance agreements were triggered by the sale of these discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting requires that these severance costs be excluded from discontinued operations and any gain or loss on the disposition of such operations. Discontinued Operations Previously, COMARCO announced it was embarking on a plan to divest its non-wireless businesses and to focus on its wireless communications products and services business. During the second quarter ended July 31, 2000, the company closed two additional transactions disposing of its defense-related business. Inclusive of inclusive of prep. Taking into consideration or account; including. the three transactions which closed in the prior quarter, these transactions were the fourth and fifth of six planned business disposition transactions. The final transaction for the disposition of the company's airport service business is currently under contract and is expected to close during the third quarter ending Oct. 31, 2000. Net income from discontinued operations for the second quarter ended July 31, 2000 was $301,000, and on a per share basis was $0.06. Net income for the second quarter ended July 31, 2000 was $774,000, and on a per share basis was $0.15. "The proceeds from the sales of our non-wireless businesses and a balance sheet free from debt positions the company to achieve internal and external growth, and to continue to meet the needs of the wireless communications industry through the development of new products and services," said Franza. About COMARCO Based in Irvine, COMARCO Inc. 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 : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
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 cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. 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 final 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). transaction and the period necessary to complete this sale is subject to certain risks and uncertainties including 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.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
July 31, July 31,
2000 1999 2000 1999
Revenues $ 11,952,000 $ 8,973,000 $ 22,049,000 $ 16,815,000
Cost of
sales 5,756,000 4,994,000 10,564,000 8,975,000
Gross
profit 6,196,000 3,979,000 11,485,000 7,840,000
Selling,
general
and
administrative
costs 3,015,000 2,080,000 5,896,000 4,183,000
Engineering
and support
costs 1,220,000 1,084,000 2,329,000 1,963,000
Operating
income
before
severance
costs 1,961,000 815,000 3,260,000 1,694,000
Severance
costs 1,325,000 -- 1,325,000 --
Operating
income 636,000 815,000 1,935,000 1,694,000
Interest
income 110,000 97,000 174,000 177,000
Minority
interest (1,000) (6,000) (2,000) (6,000)
Income before
income taxes 745,000 906,000 2,107,000 1,865,000
Income tax
expense 272,000 333,000 769,000 683,000
Net income
from
continuing
operations 473,000 573,000 1,338,000 1,182,000
Net income
from
discontinued
operations 301,000 439,000 499,000 789,000
Net income $ 774,000 $ 1,012,000 $ 1,837,000 $ 1,971,000
Earnings per share -- continuing operations:
Basic $ 0.11 $ 0.13 $ 0.31 $ 0.27
Diluted $ 0.09 $ 0.12 $ 0.26 $ 0.24
Earnings per share -- discontinued operations:
Basic $ 0.06 $ 0.10 $ 0.11 $ 0.18
Diluted $ 0.06 $ 0.09 $ 0.11 $ 0.17
Earnings per share:
Basic $ 0.17 $ 0.23 $ 0.42 $ 0.45
Diluted $ 0.15 $ 0.21 $ 0.37 $ 0.41
COMARCO INC.
SELECTED FINANCIAL DATA
CONSOLIDATED STATEMENT OF INCOME
For the Three Months Ended July 31, 2000
(Unaudited)
Excluding
One-Time One-Time As
Charge Charge Reported
Revenues $ 11,952,000 $ -- $ 11,952,000
Cost of sales 5,756,000 5,756,000
Gross profit 6,196,000 -- 6,196,000
Selling, general and
administrative costs 3,015,000 3,015,000
Engineering and support
costs 1,220,000 1,220,000
Operating income before
severance costs 1,961,000 -- 1,961,000
Severance costs -- 1,325,000 1,325,000
Operating income 1,961,000 (1,325,000) 636,000
Interest income 110,000 110,000
Minority interest (1,000) (1,000)
Income before income
taxes 2,070,000 (1,325,000) 745,000
Income tax expense
(benefit) 756,000 (484,000) 272,000
Net income from
continuing operations $ 1,314,000 $ (841,000) $ 473,000
Earnings per share -- continuing operations:
Basic $ 0.30 $ (0.19) $ 0.11
Diluted $ 0.27 $ (0.18) $ 0.09
COMARCO INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
July 31, Jan. 31,
2000 2000
(Unaudited)
Current assets:
Cash and cash equivalents $ 12,671,000 $ 5,064,000
Short-term investments 3,147,000 3,721,000
Accounts receivable, net 10,822,000 6,695,000
Inventory 4,583,000 4,852,000
Deferred tax asset 3,308,000 2,908,000
Net assets available for sale 3,046,000 9,361,000
Other current assets 3,510,000 2,651,000
Total current assets 41,087,000 35,252,000
Property and equipment, net 3,594,000 2,763,000
Software development costs, net 6,627,000 5,839,000
Intangible assets, net 2,066,000 2,222,000
Other assets 779,000 72,000
$ 54,153,000 $ 46,148,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 614,000 $ 666,000
Deferred revenue 3,465,000 3,077,000
Accrued liabilities 11,017,000 8,052,000
Total current liabilities 15,096,000 11,795,000
Deferred income taxes 2,949,000 2,599,000
Minority interest 115,000 --
Stockholders' equity 35,993,000 31,754,000
$ 54,153,000 $ 46,148,000
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