Shares of Comarco Inc., a Lake Forest-based maker of wireless testing gear and power adapters, fell Thursday after the company said that one of its two lines of business is slowing.
The stock closed down about 3% on a recent market value of about $19 million.
Comarco saw slower-than-expected sales for its line of power adapters that charge notebook computers, cell phones and other mobile gear due to weaker demand from one big customer: China’s Lenovo Group Ltd.
“Lenovo is very positive about the ChargeSource power adapter and optimistic about the outlook for our products, but demand slowed significantly during the summer,” said Chief Executive Sam Inman.
Lenovo has increased its marketing efforts for the products to improve sales, Inman said.
The company also said it expects delays on the rollout of a new line of power adapters that are set to be sold in stores.
Inman had originally hoped the power adapters would be in retail stores by the holiday season, but a delay in getting circuit boards from one of its suppliers slowed production, he said.
The launch of those products was postponed until next year, he said.
In July, the company said it’s selling its business making and servicing emergency roadside call boxes for about $3 million in cash in a management-led buyout by newly formed Case Systems LLC.
The move is part of Comarco’s bid to get profitable and to zero in on its other two businesses,power adapters and software and equipment used to test and maintain wireless networks.
The news comes on the heels of Comarco’s results for the three months ended July 31.
Comarco posted sales of $8 million, up from $2 million it reported in the year-ago quarter.
Including its recently sold call box business, the company narrowed its loss to $1.6 million, less than the $2.2 million it lost during the same period the previous year.
Excluding the call box business, Comarco saw a loss of $2 million, less than the $3 million it lost in the year-ago quarter.
Power adapter revenues totaled $3 million during the quarter, up from $700,000 in the year-ago quarter.
Sales from its wireless testing gear were $4 million, up from the $1 million it saw a year earlier.
Shares of Comarco are off some 60% in the past year. The company’s stock isn’t followed by analysts.
