Anaheim-based Comarco, which lost a whopping $10 million in its fiscal second quarter but recently has received several large defense contracts, has signed a new credit agreement with Wells Fargo Bank.
Comarco, which provides computer products and services to military and commercial customers, said the bank agreement allows it to borrow up to $14 million through August, 1988. The agreement replaces a previous unsecured credit line with Wells Fargo and an secured loan with a second, unidentified bank.
Under its previous agreement, Comarco had debts of $12.3 million with Wells Fargo.
Comarco "is in a net positive cash-flow position and forecasts that it will generate over $4 million in cash in 1988," Chairman Walter V. Sterling said. He added that the bank agreement "provides Comarco with the financial stability and working capital needed during this period." Earlier this month, Comarco won a $35-million contract to provide computer and engineering services to the Naval Weapons Center in Crane, Ind. The firm said it has a backlog of orders for more than $130 million.