Welcome!

AJAX & REA Authors: James Meickle, James Carlini, Sebastian Kruk, Andreas Grabner, Michael Kopp

News Feed Item

ClearOne Reports 2012 Third Quarter Financial Results
By PR Newswire
Article Rating:
November 15, 2012 08:00 AM EST
Reads:
 125

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
brent.johnson@clearone.com

SOURCE ClearOne Communications, Inc.

Published November 15, 2012 – Reads 125
Copyright © 2012 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

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.

Cloud Expo Breaking News
By Jeremy Geelan
“I believe it is incumbent on the Cloud Service Providers (CSPs) and/or System Integrators (SIs) to understand the regulatory and compliance-related issues that their customers face,” noted Manjula Talreja, VP of Global Cloud Business Development at Cisco, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “Of course these issues are different in each industry and in each country.” Cloud Computing Journal: The move to cloud isn't about saving money, it is about saving time - ...
Jun. 17, 2013 07:00 AM EDT  Reads: 4,020
By Jeremy Geelan
“Regulations and compliance are key trust topics with regards to cloud solutions and technology,” noted Sven Denecken, Vice President, Strategy and Co-Innovation Cloud Solutions, SAP AG, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “But it is also more than security of access – it is portability of data and a clear definition of where the data resides.” Cloud Computing Journal: The move to cloud isn't about saving money, it is about saving time – agree or disagree? Sve...
Jun. 17, 2013 06:30 AM EDT  Reads: 1,794
By Jeremy Geelan
Many organizations want to expand upon the IaaS foundation to deliver cloud services in all forms – software, mobility, infrastructure and IT. Understanding the strategy, planning process and tools for this transformation will help catalyze changes in the way the business operates and deliver real value.
Jun. 13, 2013 09:00 AM EDT  Reads: 3,198
By Elizabeth White
WSO2 on Thursday announced that WSO2 Vice President of Technology Evangelism Chris Haddad and SUSE Business Development Manager Frank Rego will lead a joint presentation at 12 International Cloud Expo. The session, "Bridging IaaS and PaaS to Deliver the Service-Oriented Data Center," is part of the event's Enterprise Cloud Computing Track on Thursday, June 13, 2013. The Cloud Expo conference is being held June 10-13, 2013 at the Javits Center in New York City. Bridging IaaS and PaaS to Deliver ...
Jun. 13, 2013 07:00 AM EDT  Reads: 2,359
By Jeremy Geelan
IT has more opportunities than ever before with the growth in users, devices, data and secure cloud services. This creates not only a more enriching experience for users, but more opportunities for businesses. The key to capitalizing on these opportunities is to have the right tools in place to help scale operations. In his Day 3 Keynote at 12th Cloud Expo | Cloud Expo New York [June 10-13, 2013], Intel's Rob Crooke will describe the range of products that Intel provides to support different usa...
Jun. 12, 2013 08:30 AM EDT  Reads: 3,153
By Elizabeth White
Quantum Corp., a proven global expert in data protection and Big Data management, has announced that Senior Vice President of Cloud Solutions Henrik Rosendahl will present a session exploring the future of cloud data protection and the impact of data reduction technologies on cloud storage at the 12th International Cloud Expo. The conference takes place June 10-13 at the Javits Center in New York City. Rosendahl will explore trends in cloud-based backup and disaster recovery (DR) and how curre...
Jun. 11, 2013 12:00 PM EDT  Reads: 2,043
By Elizabeth White
One of the cloud’s biggest draws is the capability to virtualize computing resources, allowing it to be consumed with the click of a mouse. But behind that simple click is an enormous infrastructure challenge that has recently been cited as a major cause for slower enterprise adoption. Enterprises can better prepare for this shift and take full advantage of future computing benefits. Between architecture design and migration planning, the road can be long, so what do you do with your talent? I...
Jun. 11, 2013 09:00 AM EDT  Reads: 4,226
By Pat Romanski
In the old world of IT, if you didn't have hardware capacity or the budget to buy more, your project was dead in the water. Budget constraints can leave some of the best, most creative and most ingenious innovations on the cutting room floor. It’s a true dilemma for developers and innovators – why spend the time creating, when a project could be abandoned in a blink? That was the old world. In the new world of IT, developers rule. They have access to resources they can spin up instantly. A hyb...
Jun. 11, 2013 08:00 AM EDT  Reads: 4,351
By Pat Romanski
INetU, the industry's experts in complex hosting and a global provider of business-centric managed cloud and application hosting, has announced that Cloud Architect Rich Hand will be presenting "Private Cloud, Public Cloud - Is There a Third Option?" at the 12th International Cloud Expo taking place June 10-13, 2013 in New York City. As more enterprise IT departments move into the cloud, many executives are evaluating whether to adopt a Public or Private cloud. The cost benefits of the Public ...
Jun. 11, 2013 07:00 AM EDT  Reads: 1,931
By Liz McMillan
“I’m careful when using terms like Big Data, because it can mean so many things to different people,” explained Eric Hanselman, Chief Analyst at 451 Research, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “There is huge value in analytics that companies can use to pull intelligence from a collection of data sources that are available in their businesses. The inexpensive storage that cloud services can offer make a great environment to pull together siloed data.” Cloud Co...
Jun. 10, 2013 01:00 PM EDT  Reads: 2,188
MORE »