Comarco Reports First Quarter Fiscal 2014 Financial Results

LAKE FOREST, Calif., June 14, 2013

Revenue for the first quarter of fiscal 2014 was $1.4 million, a decrease of 36% compared with $2.2 million in revenue for the first quarter of fiscal 2013.  The prior year revenue was significantly and positively impacted by increased product shipments to Lenovo in response to a supply chain disruption during the fourth quarter of fiscal 2012.

The gross margin for the first quarter of fiscal 2014 was 21% compared to 15% for the prior year first quarter due to continued management of headcount and expenses, especially related to our supply chain overhead, as well as a reduction in inventory reserve expenses.

The Company reported a net loss for the first fiscal quarter of $1.5 million, or $0.11 per share. This compared with a net loss of $0.7 million, or $0.10 per share, in the first quarter of fiscal 2013.  The first quarter of fiscal 2014 includes a $0.8 million non-cash expense due to a change in the fair value of derivative liabilities, with no similar expenses in the first quarter of the prior fiscal year. The derivative liabilities consist of warrants related to our previous Broadwood financing as well as the convertible feature of our existing Elkhorn loan. Excluding the non-cash expense discussed above, the Company incurred a net loss of $0.05 per share for the first quarter of fiscal 2014.

"During the quarter, our efforts to expand, monetize, and protect our patent portfolio continued. However, it is far too early in the process to project any specific outcomes,"said Tom Lanni, the Company's President and CEO. 

Forward-Looking Statement Disclaimer 

This press release contains statements relating to our future plans, strategies and developments that are based on our current beliefs and assumptions.  These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "may," "should," and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this release. Additionally, statements concerning future matters are forward-looking statements.