Comarco Disputes Overcharging Claim

Comarco Inc., a provider of wireless communications and engineering systems, said it disputes a claim by a customer it declined to name that says it was overcharged by $5.5 million.

In a statement released Friday afternoon, Comarco Chief Executive Don M. Bailey said the dispute is over indirect charges passed along to the client over a seven-year period.

The Yorba Linda-based company claims, however that the costs charged were part of its general and administrative costs charged on two of the customer’s completed contracts, Comarco said.

“Based on our initial review, (Comarco) management believes that it has a strong meritorious defense, and intends to vigorously defend its position,” Bailey said. “In addition, we believe that our reserves are adequate, and therefore do not currently plan to record any charge to this situation.”

Comarco had fiscal 1993 sales of $84.7 million. The company’s stock closed unchanged at $4.875 a share on the Nasdaq market Friday.