Discontinued Operations

6 Months Ended

Jul. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

3. Discontinued Operations

          The Company entered into an Asset Purchase Agreement on September 26, 2008 with Ascom Holding AG and its subsidiary Ascom Inc., (collectively, “Ascom”) to sell the Wireless Test Solutions (“WTS”) business and related assets. Comarco’s shareholders approved the transaction on November 26, 2008 which closed on January 6, 2009.

          The aggregate purchase price paid to Comarco in connection with the transaction was $12,750,000 in cash, with $1,275,000 of the proceeds placed in escrow for one year from the closing date as security for general indemnification rights. The proceeds placed in escrow were released in January 2010.

          Operating results of the WTS discontinued operations are as follows (in thousands):

	Three Months Ended						Six Months Ended
	July 31,						July 31,
	2011			2010			2011			2010
Revenues	$	—		$	—		$	—		$	—
Income (loss) from discontinued operations:
Gain on sale, net of taxes of $0	$	—		$	—		$	—		$	—
Loss from discontinued operations, before taxes		(21	)		(594	)		(21	)		(601	)
Income tax expense		—			—			—			—
Total Loss from discontinued operations	$	(21	)	$	(594	)	$	(21	)	$	(601	)

          The fiscal 2012 year to date loss from WTS discontinued operations of $21,000 relates to a sales tax audit performed by the California State Board of Equalization during the second quarter of fiscal 2012. The expensed amount represents the portion of the assessment that is to be borne by Comarco for the sale of the WTS business to Ascom.

          The fiscal 2011 year to date loss from WTS discontinued operations of $601,000 relates to a settlement with a former officer and employee of the WTS business, whereby Comarco agreed to pay the former employee $508,000 which amount included reimbursement for attorney and professional fees. The remaining loss relates primarily to Comarco’s legal fees incurred relating to the matter.