Welcome!

Machine Learning Authors: Liz McMillan, Jack Jachner, Pat Romanski, Progress Blog, Elizabeth White

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
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...