Comarco Improves Balance Sheet Through Settlement With Supplier
LAKE FOREST, Calif., July 26, 2012 /PRNewswire/ — Comarco, Inc. (OTC: CMRO.PK) announced today that it has reached a mutually satisfactory resolution of a dispute with EDAC, a supplier of the now discontinued Manhattan product, ending the litigation between the two companies. The settlement involved no cash payments by either of the parties, but allows the Company to remove a significant liability from its balance sheet. The effect on Comarco of the settlement is a reduction of approximately $1.9 million, or 39%, in its liabilities and an approximately $500,000, or 13%, reduction in its receivables resulting in a net increase of approximately $1.4 million in Comarco’s shareholder equity.
“We are very pleased to have this litigation behind us,” said Tom Lanni, the Company’s President and CEO. “This settlement is an important step forward in the rebuilding of Comarco’s financial strength and positioning the Company for future growth. In addition to continuing our efforts to improve the Company’s financial condition, we remain focused on moving forward with our growth strategies to build shareholder value by capitalizing on the sizable potential market for our innovative, patented ChargeSource(®) products.”
This news release includes “forward-looking statements” that are subject to risks, uncertainties, and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “would,” and similar expressions that are intended to identify forward-looking statements. Forward-looking statements include any statements herein not of a historical nature. Many important factors may cause the Company’s actual results to differ materially from those discussed in any such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, we cannot assure that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Based in Lake Forest, Calif., Comarco is a leading designer, developer, and provider of innovative mobile power solutions through its ChargeSource® line of multi-function universal power products. These standalone, multi-function mobile power adapters are used to simultaneously power and charge notebook computers, mobile phones, E-readers, iPads(®), iPods(®), and many other portable, rechargeable consumer electronic devices. The Company’s websites can be found at www.cmro.com and www.chargesource.com.
SOURCE Comarco, Inc.