CMRO » Topics » Our stock price has been and will likely remain highly volatile.

These excerpts taken from the CMRO 10-K filed Apr 30, 2008.

Our stock price has been and will likely remain highly volatile.

The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 

   

Our quarterly operating results;

 

   

Changes in the wireless communications and consumer electronics industries;

 

   

Changes in the economic outlook of the particular markets in which we sell our products and services;

 

   

The gain or loss of significant customers;

 

   

Reductions in demand or expectations of future demand by our customers;

 

   

Changes in stock market analyst recommendations regarding us, our competitors, or our customers;

 

   

The timing and announcements of technological innovations or new products by our competitors or by us, and

 

   

Other events affecting other companies that investors deem comparable to us.

All of these factors may contribute to the volatility of our stock price.

Our stock price has been and will likely remain highly volatile.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that
have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has
exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 







  

Our quarterly operating results;

 







  

Changes in the wireless communications and consumer electronics industries;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Changes in the economic outlook of the particular markets in which we sell our products and services;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

The gain or loss of significant customers;

 







  

Reductions in demand or expectations of future demand by our customers;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Changes in stock market analyst recommendations regarding us, our competitors, or our customers;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

The timing and announcements of technological innovations or new products by our competitors or by us, and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Other events affecting other companies that investors deem comparable to us.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">All of these factors may contribute to the volatility of our stock price.

FACE="Times New Roman" SIZE="2">The trading volume of our common stock often has been limited and may depress the price for our common stock.

FACE="Times New Roman" SIZE="2">A significant decline in our stock price, even if temporary, could result in substantial losses for individual shareholders. The trading volume of our common stock has been and may continue to be limited. Limited
trading volume could depress the price for our common stock because fewer analysts may provide coverage for our stock and because investors might be unwilling to pay a higher market price for a stock that is less liquid. This limited trading volume,
along with market and industry stock price fluctuations and other factors affecting our operations, may depress the price for our common stock or result in greater volatility in the price of our common stock.

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ITEM 1B.
UNRESOLVED STAFF COMMENTS

None.

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ITEM 2.
PROPERTIES

Our headquarters and manufacturing
facility is located in Lake Forest, California. This leased facility consists of approximately 25,000 square feet of office space and approximately 5,000 square feet of manufacturing and warehouse space. The lease for this facility expires
in August 2011. We also lease office space and, in some instances, warehouse space in California, New York, China, and Mexico. The leases on these facilities, which are used by our call box and WTS businesses, expire on various dates through June
2010.

 


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ITEM 3.
LEGAL PROCEEDINGS

Mobility Electronics, Inc.
(“Mobility”) vs. Comarco Wireless Technologies, Inc., Case No. 5:07cv00084, U.S. District Court for the Eastern District of Texas.
On June 8, 2007, Mobility sued us alleging that two Mobility patents are infringed by the
mechanical keying arrangement between power adapters and programming tips used by us in our mobile power products sold through our distributors. We have denied liability and countersued alleging that Mobility has breached a Settlement Agreement
entered into between the parties in 2003 to settle a previous patent infringement suit, and that Mobility is liable for infringement of at least one Comarco patent by effectively sub-licensing a third party to manufacture and sell power adapter
products and accessories covered by the Comarco patent. Mobility has denied liability and amended its claims to further allege that we breached the Settlement Agreement by asserting claims against Mobility because its activities are permissible
under the Settlement Agreement. On November 29, 2007, we filed our Answer, Defense, and Counterclaims. On March 5, 2008, both parties attended mediation before a retired U.S. district court judge, which did not lead to a settlement.
However, the parties may continue mediation within a month or two. Trial is set for July 2009.

SwissQual AG (“SwissQual”) vs.
Comarco Wireless Technologies, Inc., Case No. cv-07-07819, Central District of California.
On November 30, 2007, SwissQual filed a lawsuit against us alleging fraud, intentional interference with prospective economic advantage, breach of
contract, trademark infringement, unfair competition, trade secret misappropriation, and seeking declaratory relief relating to the December 15, 2005 Distribution and Sales Agreement between the parties.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We answered SwissQual’s complaint and denied any and all liability to SwissQual and denied that SwissQual is entitled to any of the relief sought in
its complaint. In addition, we asserted counterclaims against SwissQual alleging breach of contract, breach of the covenant of good faith and fair dealing, trade secret misappropriation, intentional interference with prospective economic advantage,
negligent interference with prospective economic advantage, unfair competition, conversion, unjust enrichment/restitution, an accounting for money owed due to SwissQual’s misconduct and seeking declaratory relief relating to SwissQual’s
failure to comply with its support obligations, indemnity, and trademark ownership. SwissQual has informed the Court that it will be amending its complaint. Discovery has not yet commenced and a trial date has been set for February 10, 2009.

The matters described above are in the very early stages and the outcome of these matters is neither determinable nor estimable. We
believe we have meritorious defenses to the matters described above and intend to vigorously defend these actions. In addition to the pending matters described above, we are from time to time involved in various legal proceedings incidental to the
conduct of our business. We believe that the outcome of all such pending legal proceedings will not in the aggregate have a material adverse effect on our consolidated results of operations and financial position.

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ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

SIZE="2">No matter was submitted during the fourth quarter ended January 31, 2008 to a vote of our security holders.

 


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This excerpt taken from the CMRO 10-K filed Apr 30, 2007.

Our stock price has been and will likely remain highly volatile.

The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 

   

Our quarterly operating results;

 

   

Changes in the wireless communications and consumer electronics industries;

 

   

Changes in the economic outlook of the particular markets in which we sell our products and services;

 

   

The gain or loss of significant customers;

 

   

Reductions in demand or expectations of future demand by our customers;

 

   

Changes in stock market analyst recommendations regarding us, our competitors, or our customers;

 

   

The timing and announcements of technological innovations or new products by our competitors or by us, and

 

   

Other events affecting other companies that investors deem comparable to us.

This excerpt taken from the CMRO 10-K filed May 1, 2006.

Our stock price has been and will likely remain highly volatile.

The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 

    Our quarterly operating results;

 

    Changes in the wireless communications and consumer electronics industries;

 

    Changes in the economic outlook of the particular markets in which we sell our products and services;

 

    The gain or loss of significant customers;

 

    Reductions in demand or expectations of future demand by our customers;

 

    Changes in stock market analyst recommendations regarding us, our competitors, or our customers;

 

    The timing and announcements of technological innovations or new products by our competitors or by us, and

 

    Other events affecting other companies that investors deem comparable to us.
This excerpt taken from the CMRO 10-Q filed Jun 14, 2005.

Our stock price has been and will likely remain highly volatile.

 

The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 

    our quarterly operating results;

 

    changes in the wireless communications and consumer electronics industries;

 

    changes in the economic outlook of the particular markets in which we sell our products and services;

 

    the gain or loss of significant customers;

 

    reductions in demand or expectations of future demand by our customers;

 

    changes in stock market analyst recommendations regarding us, our competitors, or our customers;

 

    the timing and announcements of technological innovations or new products by our competitors or by us; and

 

    other events affecting other companies that investors deem comparable to us.

 

This excerpt taken from the CMRO 10-K filed May 11, 2005.

Our stock price has been and will likely remain highly volatile.

 

The stock market in general, and the stock prices of technology and wireless communications companies in particular, have experienced fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry stock price fluctuations may adversely affect the market price of shares of our common stock. The market price of our stock has exhibited significant price fluctuations, which makes our stock unsuitable for many investors. Our stock price may also be affected by the following factors:

 

    our quarterly operating results;

 

    changes in the wireless communications and consumer electronics industries;

 

    changes in the economic outlook of the particular markets in which we sell our products and services;

 

    the gain or loss of significant customers;

 

    reductions in demand or expectations of future demand by our customers;

 

    changes in stock market analyst recommendations regarding us, our competitors, or our customers;

 

    the timing and announcements of technological innovations or new products by our competitors or by us; and

 

    other events affecting other companies that investors deem comparable to us.

 

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