Welcome!

Machine Learning Authors: Yeshim Deniz, Peter Silva, Pat Romanski, Elizabeth White, Derek Weeks

News Feed Item

ClearOne Reports 2012 Third Quarter Financial Results

SALT LAKE CITY, Nov. 15, 2012 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported its financial results for the three and nine months ended September 30, 2012.

For the 2012 third quarter, revenue was $11.6 million compared with $11.5 million for the third quarter of 2011.  Gross profit was $6.7 million, or 58% of revenue, compared with $7.0 million, or 61% of revenue, for the third quarter of 2011.  Operating income was $1.4 million and net income was $929,000, or $0.10 per diluted share.  For the third quarter of 2011, which included a favorable judgment award of $3.7 million, operating income was $5.4 million and net income was $3.4 million, or $0.36 per diluted share.  Non-GAAP net income, which excludes proceeds from litigation, share-based compensation and other non-operating items, rose to $1.3 million, or $0.14 per diluted share, from $1.2 million, or $0.13 per diluted share, for the third quarter of 2011.  Non-GAAP Adjusted EBITDA was $2.1 million, or $0.23 per diluted share, for third quarters of both 2012 and 2011.

For the first nine months of 2012, revenue was $33.4 million compared with $34.1 million for the same period in 2011.  Gross profit was $19.9 million, or 60% of revenue, compared with $20.4 million, or 60% of revenue, for the first nine months of 2011.  Operating income was $3.2 million and net income was $2.0 million, or $0.21 per diluted share.  For the first nine months of the prior year, which included the $3.7 judgment award, operating income was $8.4 million and net income was $5.5 million, or $0.59 per diluted share.  Non-GAAP net income was $2.8 million, or $0.30 per diluted share, compared to $3.8 million, or $0.41 per diluted share, for the nine-month period of 2011.  Non-GAAP Adjusted EBITDA was $5.2 million, or $0.56 per diluted share, compared with $6.6 million, or $0.71 per diluted share, for the first nine months of 2011.

The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.

"Revenue for the 2012 third quarter increased slightly over the same period last year, driven by increased sales in our EMEA region, offset by a decline in revenues from our Asia Pacific region," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne.  "During the quarter, we made solid progress strengthening our balance sheet as evidenced by our increased cash position and lower inventory levels. 

"While the technology companies continue to be impacted by global economic headwinds, our business had performed better than many of our industry peers.  Looking ahead, we plan to launch several new products over the next three months, which will provide positive momentum as we enter 2013."

At September 30, 2012, the company had cash and cash equivalents of $14.3 million, up $3.9 million from June 30, 2012, and no debt.

Recent Highlights:

  • September 2012. The company launched an enhanced corporate website, which streamlines the user experience with new organization of the full breadth of ClearOne audio and video products and solutions.
  • October 2012. The company's president, CEO and chairman, Zee Hakimoglu, received the 2012 InfoComm International Women in AV Award; created to raise awareness of the growing role of female professionals in the male-dominated field of audiovisual technology.
  • October 2012. The company established a distribution agreement with Ingram Micro Inc. under which Ingram Micro will distribute ClearOne's new line of software-based video conferencing solutions and its USB, analog and VoIP conference phones to authorized technology resellers in the U.S.
  • October 2012. The company launched the MagicBox on-premise Entry-Level Server (ELS) to extend its web-based, digital signage offering.  The ELS runs MagicBox WebSuite software applications for digital signage, including content creation and asset management inside a browser for a comprehensive content management experience — from design to verification.

Non-GAAP Financial Measures

ClearOne provides non-GAAP financial information in the form of Non-GAAP net income, Adjusted EBITDA and corresponding earnings per share to investors to supplement GAAP financial information.  ClearOne believes that excluding certain items from GAAP results allows ClearOne's management to better understand ClearOne's consolidated financial performance from period to period as management does not believe that the excluded items are reflective of underlying operating performance.  Non-GAAP net income, Adjusted EBITDA and corresponding earnings per share excludes certain costs and expenses, the details of which are provided in the tables below containing the reconciliation between GAAP and Non-GAAP financial measures.  The exclusion of these items in the non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.  ClearOne believes non-GAAP financial measures will provide investors with useful information to help them evaluate ClearOne's operating results and projections.  This non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating income, net income or other financial measures prepared in accordance with GAAP.  There are limitations to the use of non-GAAP financial measures.  Other companies, including companies in ClearOne's industry, may calculate non-GAAP financial measures differently than ClearOne does, limiting the usefulness of those measures for comparative purposes.  A detailed reconciliation of Non-GAAP net income to GAAP net income is included with this news release.

About ClearOne

ClearOne is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for audio, video and data multimedia communication.  The performance and simplicity of its advanced comprehensive solutions enhance the quality of life. ClearOne products offer unprecedented levels of functionality, reliability and scalability.  More information about the company can be found at www.clearone.com.

This release contains "forward-looking" statements that are based on present circumstances and on ClearOne's predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated.  Such forward-looking statements, including the successful commercialization of expected future product launches and any statements of the plans and objectives of management for future operations, are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements.  Such forward-looking statements are made only as of the date of this release and ClearOne assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances.  Readers should not place undue reliance on these forward-looking statements.

http://www.b2i.us/irpass.asp?BzID=509&to=ea&s=0



CLEARONE COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)








September 30, 2012

December 31, 2011


Unaudited


ASSETS



Current assets:



Cash and cash equivalents

$              14,332

$             16,683

Receivables, net of allowance for doubtful accounts of $64 and $149, respectively

7,667

8,457

Inventories

11,992

12,565

Deferred income taxes

3,025

2,987

Prepaid expenses and other assets

1,448

740

Total current assets

38,464

41,432




Long-term inventories, net

2,432

1,905

Property and equipment, net

1,971

2,338

Intangibles, net

5,636

2,690

Goodwill

1,939

1,153

Other assets

64

41

Total assets

$              50,506

$             49,559




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:



Accounts payable

$                1,411

$               2,814

Accrued liabilities

2,568

2,534

Deferred product revenue

3,545

3,404

Total current liabilities

7,524

8,752




Deferred income taxes

128

101

Deferred rent

454

494

Other long-term liabilities

686

548

Total liabilities

8,792

9,895




Shareholders' equity:



Common stock, par value $0.001, 50,000,000 shares authorized,

9,191,099 and 9,098,152 shares issued and outstanding,  respectively

9

9

Additional paid-in capital

40,550

40,073

Treasury stock at cost - 94,744 shares as of September 30, 2012

(384)

-

Retained earnings (accumulated deficit)

1,539

(418)

Total shareholders' equity

41,714

39,664

Total liabilities and shareholders' equity

$              50,506

$             49,559



CLEARONE COMMUNICATIONS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share value)










Three months ended
September 30,


Nine Months ended
September 30,


2012


2011


2012


2011

Revenue

$              11,573


$        11,511


$            33,382


$          34,102

Cost of goods sold

4,856


4,534


13,464


13,666

Gross profit

6,717


6,977


19,918


20,436









Operating expenses:








Sales and marketing

1,821


2,184


6,209


6,274

Research and product development

1,959


1,796


5,996


5,249

General and administrative

1,545


1,333


4,736


4,166

Proceeds from litigation

-


(3,702)


(250)


(3,702)

Total operating expenses

5,325


1,611


16,691


11,987









Operating income

1,392


5,366


3,227


8,449

Other income (expense), net

29


(4)


40


15









Income before income taxes

1,421


5,362


3,267


8,464

Provision for income taxes

492


1,987


1,310


2,956

Net income

$                    929


$           3,375


$              1,957


$            5,508









Basic earnings per common share

$                   0.10


$             0.37


$                 0.21


$               0.61

Diluted earnings per common share

$                   0.10


$             0.36


$                 0.21


$               0.59









Basic weighted average shares outstanding

9,113,713


9,089,919


9,106,455


9,005,221

Diluted weighted average shares outstanding

9,193,574


9,358,292


9,219,161


9,276,619



CLEARONE COMMUNICATIONS, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(Dollars in thousands, except per share value)










Quarter ended September 30, 2012


Quarter ended September 30, 2011


GAAP

Adjustments

Non-GAAP


GAAP

Adjustments

Non-GAAP

Revenue

$     11,573

$         -

$     11,573


$      11,511

$           -

$   11,511

Cost of goods sold

4,856

(2)

4,854


4,534

-

4,534

Gross profit

6,717

2

6,719


6,977

-

6,977









Operating expenses:








Sales and marketing

1,821

(15)

1,806


2,184

(4)

2,180

Research and product development

1,959

(9)

1,950


1,796

(4)

1,792

General and administrative

1,545

(467)

1,078


1,333

(267)

1,066

Proceeds from litigation

-

-

-


(3,702)

3,702

-

Total operating expenses

5,325

(491)

4,834


1,611

3,427

5,038









Operating income

1,392

493

1,885


5,366

(3,427)

1,939

Other income, net

29

-

29


(4)

-

(4)









Income before income taxes

1,421

493

1,914


5,362

(3,427)

1,935

Provision for income taxes

492

171

663


1,987

(1,285)

702

Net income

$          929

$    322

$       1,251


$        3,375

$  (2,142)

$     1,233









Basic earnings per common share

$         0.10


$         0.14


$          0.37


$       0.14

Diluted earnings per common share

$         0.10


$         0.14


$          0.36


$       0.13









Basic weighted average shares outstanding

9,113,713


9,113,713


9,089,919


9,089,919

Diluted weighted average shares outstanding

9,193,574


9,193,574


9,358,292


9,358,292

















The adjustments consist of the following:








Proceeds from litigation


$         -




$  (3,702)


Share-based compensation


65




48


Amortization of purchased intangibles


222




87


Legal expenses for litigation relating to indemnification of former







officers, intellectual property claims and our claim for damages

162




139


Acquisition related expenses


44




-




493




(3,428)


Provision for income taxes affected by the above adjustments

171




(1,285)


Total adjustments


$    322




$  (2,143)




CLEARONE COMMUNICATIONS, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(Dollars in thousands, except per share value)










Nine Months ended
September 30, 2012


Nine Months ended
September 30, 2011


GAAP

Adjustments

Non-GAAP


GAAP

Adjustments

Non-GAAP

Revenue

$    33,382

$           -

$   33,382


$    34,102

$           -

$   34,102

Cost of goods sold

13,464

(3)

13,461


13,666

-

13,666

Gross profit

19,918

3

19,921


20,436

-

20,436









Operating expenses:








Sales and marketing

6,209

(45)

6,164


6,274

(14)

6,260

Research and product development

5,996

(26)

5,970


5,249

(12)

5,237

General and administrative

4,736

(1,452)

3,284


4,166

(1,070)

3,096

Proceeds from litigation

(250)

250

-


(3,702)

3,702

-

Total operating expenses

16,691

(1,273)

15,418


11,987

2,606

14,593









Operating income

3,227

1,276

4,503


8,449

(2,606)

5,843

Other income, net

40

-

40


15

-

15









Income before income taxes

3,267

1,276

4,543


8,464

(2,606)

5,858

Provision for (benefit from) income taxes

1,310

481

1,791


2,956

(943)

2,013

Net income

$      1,957

$      795

$     2,752


$      5,508

$  (1,663)

$     3,845









Basic earnings per common share

$        0.21


$       0.30


$        0.61


$       0.43

Diluted earnings per common share

$        0.21


$       0.30


$        0.59


$       0.41









Basic weighted average shares outstanding

9,106,455


9,106,455


9,005,221


9,005,221

Diluted weighted average shares outstanding

9,219,161


9,219,161


9,276,619


9,276,619

















The adjustments consist of the following:








Proceeds from litigation


$     (250)




$  (3,702)


Share-based compensation


176




131


Amortization of purchased intangibles


554




263


Legal expenses for litigation relating to indemnification of former







officers, intellectual property claims and our claim for damages

526




841


Acquisition related expenses


270




-


Total of adjustments before taxes


1,276




(2,467)


Income taxes affected by the above adjustments


481




(893)


Total adjustments


$      795




$  (1,574)




CLEARONE COMMUNICATIONS, INC.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA

(Dollars in thousands, except per share value)










Three months ended

September 30,


Nine months ended

September 30,



2012

2011


2012

2011

GAAP Net Income


$           929

$         3,375


$       1,957

$       5,508

Adjustments:







Provision for (benefit from) for income taxes


492

1,987


1,310

2,956

Depreciation and Amortization


412

285


1,166

872

Non-GAAP EBITDA


1,833

5,647


4,433

9,336

Proceeds from litigation


-

(3,702)


(250)

(3,702)

Share-based compensation


65

48


176

131

Legal expenses for litigation relating to indemnification of former







officers, intellectual property claims and our claim for damages


162

139


526

841

Acquisition related expenses


44

-


270

-

Non-GAAP Adjusted EBITDA


$        2,104

$         2,132


$       5,155

$       6,606








Basic weighted average shares outstanding


9,113,713

9,089,919


9,106,455

9,005,221

Diluted weighted average shares outstanding


9,193,574

9,358,292


9,219,161

9,276,619








Basic Adjusted EBITDA per common share


$          0.23

$           0.23


$         0.57

$         0.73

Diluted Adjusted EBITDA per common share


$          0.23

$           0.23


$         0.56

$         0.71

Contact:
Brent Johnson
Investor Relations
801-303-3577
[email protected]

SOURCE ClearOne Communications, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...