Laptop case and accessories maker Targus chose Comarco to supply chargers after canceling its contract with universal charger manufacturer iGo. Comarco has also found success with iGo client Lenovo, winning more contracts than iGo from Lenovo last October.
Under an agreement filed Friday with the SEC, Comarco will provide exclusive products to Targus. The deal will go into effect on May 4, with certain provisions becoming effective in March to allow the companies to prepare. “This is a very, very important step for us because we have lacked a strong worldwide partner to deliver this product to the retail customer,” says Comarco CEO Sam Inman.
Comarco’s shares rose 8 percent on Friday, rising to $1.45 in early trading before closing at $1.35.
The cancellation of Targus’ contract with iGo added to the company’s troubles with shareholder dissent and its plunging stock price. iGo said in a statement that it believed the termination of the contractual relationship will have only a modestly negative impact on cash flow. However, the company saw sales to OEM’s fall almost 88 percent in 2008 after it lost business from Dell and Lenovo. Over $32 million in sales to Targus helped offset those declines, making Targus a strategically significant iGo client in 2008.
Shares of iGo fell 85 percent in the past 18 months, and the company says it is evaluating all options to boost shares.
The company does not plan to disclose developments or provide progress updates on specific initiatives without board approval. “There can be no assurance that our review of strategic alternatives will result in any specific type of strategic transaction,” said iGo in a statement.
Based in Scottsdale, Ariz., iGo develops and markets universal chargers for portable computers, mobile phones, Bluetooth headsets, smartphones/PDAs and other devices.