Note 3 - Customer and Supplier Concentrations

12 Months Ended

Jan. 31, 2014

Customer And Supplier Concentrations [Abstract]

Customer And Supplier Concentrations [Text Block]

3.	Customer and Supplier Concentrations

Substantially all of the Company’s revenue is derived from a single customer, Lenovo. As discussed in Note 2 above, Lenovo notified us of their intention to cease offering Comarco’s product to its customers. We shipped approximately 20,000 of our Constellation units to Lenovo and 11,000 field replacement units to Lenovo affiliates during the third fiscal quarter of 2014, and we have no further orders from Lenovo or their affiliates. The loss of Lenovo will have a material adverse impact on our future revenues and results of operations.

The customers providing 10 percent or more of our revenue for either of the years ended January 31, 2014 and 2013 are listed below (in thousands, except percentages).

	Years Ended January 31,
	2014				2013
Total revenue	$	4,429	100	%	$	6,338	100	%

Customer concentration:
Lenovo Information Products Co., Ltd.	$	4,319	98	%		6,203	98	%
	$	4,319	98	%	$	6,203	98	%

Revenue for fiscal 2014 decreased to $4.4 million compared to $6.3 million for fiscal 2013. The decrease is attributable to by decreased sales to our principal customer Lenovo. In the third quarter of fiscal 2014, Lenovo terminated its relationship with us. We completed our final shipment of product to Lenovo during the third quarter ended October 31, 2013 and we generated de minimus revenue in our fourth quarter ending January 31, 2014.

Our revenues by geographic location for the years ended January 31, 2014 and 2013 are listed below (in thousands, except percentages).

	Years Ended January 31,
	2014				2013
Revenue:
Asia-Pacific	$	4,319	98	%		6,238	98	%
North America		73	2	%	$	78	1	%
Europe		37	1	%		22	0	%
	$	4,429	100	%	$	6,338	100	%

The suppliers comprising 10 percent or more of our gross accounts receivable due from customers at either January 31, 2014 or 2013 are listed below (in thousands, except percentages).

	Years Ended January 31,
	2014				2013
Total gross accounts receivable due from customers	$	-	0	%	$	1,307	100	%
Customer concentration:
Lenovo Information Products Co., Ltd.	$	-	0	%		1,291	99	%
Dell Inc. and affililates		-	0	%		-	0	%
	$	-	0	%	$	-	0	%

The suppliers comprising 10 percent or more of our gross accounts receivable due from suppliers at either January 31, 2014 or 2013 are listed below (in thousands, except percentages).

	Years Ended January 31,
	2014				2013
Total gross accounts receivable due from suppliers	$	128	100	%	$	1,156	100	%
Customer concentration:
Power Systems Technologies, Ltd.	$	-	0	%	$	1,008	87	%
Zheng Ge Electrical Co., Ltd.		122	95	%		122	11	%
	$	122	95	%	$	1,130	98	%

Zheng Ge Electrical Co., Ltd. (“Zheng Ge”) was a tip supplier for the Bronx product, which was subject to a recall. We previously sourced some of the component parts that Zheng Ge used in the manufacture of the tips. We ceased paying Zheng Ge during the course of the product recall while we investigated the manufacturing defect which ultimately caused the recall and, likewise, Zheng Ge ceased paying us.

The suppliers and other vendors comprising 10 percent or more of our gross accounts payable at either January 31, 2014 or 2013 are listed below (in thousands, except percentages).

	Years Ended January 31,
	2014				2013

Total gross accounts payable	$	4,363	100	%	$	3,688	100	%
Supplier and vendor concentration:
Chicony Power Technology, Co. Ltd.	$	1,100	25	%	$	1,100	30	%
Pillsbury Winthrop Shaw Pittman, LLP	$	1,953	45	%	$	1,614	44	%
	$	3,053	70	%	$	2,714	74	%

Chicony Power Technology, Co. Ltd., (“Chicony”) was the manufacturer of the Bronx product, which was subject to a recall and we are currently in litigation with Chicony (see Note 13). We made no payments to this supplier during either fiscal 2014 or 2013. On February 4, 2014, a jury returned a verdict in our favor and awarded us damages of approximately $10.8 million, offset by previously accrued liabilities of $1.1 million for a net award of approximately $9.7 million. Because the award is subject to entry of final judgment and may be appealed, we will not recognize the award in our financial statements until the award is realized. We have made no payments to Chicony during fiscal 2014 (see Note 13).