Breaking News

Tweet TWEET

ClearOne Reports 2013 Third-Quarter Financial Results

            ClearOne Reports 2013 Third-Quarter Financial Results

New Professional Product Sales Boost Company to Record Third-Quarter Revenues

PR Newswire

SALT LAKE CITY, Oct. 24, 2013

SALT LAKE CITY, Oct. 24, 2013 /PRNewswire/ --ClearOne (NASDAQ: CLRO) today
reported its financial results for the third quarter ended September30,
2013. Record results mark the fifth consecutive quarter of year-over-year
revenue growth.

For the 2013 third quarter, revenue increased by 7% to $12.4 million, compared
with $11.6 million for the third quarter of 2012. Gross profit was $7.4
million, or 60% of revenue, compared with $6.7 million, or 58% of revenue, for
the third quarter of 2012. Non-GAAP operating income increased by 24% to $2.3
million from $1.9 million for the 2012 third quarter. Non-GAAP net income grew
36% to $1.7 million, or $0.18 per diluted share, from $1.2 million, or $0.13
per diluted share, last year. Non-GAAP adjusted EBITDA for the 2013 third
quarter increased 24% to $2.6 million, or $0.28 per diluted share, from $2.1
million, or $0.23 per diluted share, a year ago.

For the nine months ended September 30, 2013, revenue rose by 6% to $35.4
million from $33.4 million for the same period in 2012. Gross profit was
$21.3 million, or 60% of revenue, compared with $19.9 million, or 60% of
revenue, for nine months ended September 30, 2012. Non-GAAP operating income
for the nine months ended September 30, 2013 increased by 23% to $5.5 million
from $4.5 million for the nine months ended September 30, 2012. Non-GAAP net
income for the 2013 year-to-date period grew 41% to $3.9 million, or $0.41 per
diluted share, from $2.8 million or $0.30 per diluted share, last year.
Non-GAAP adjusted EBITDA increased 21% to $6.2 million, or $0.66 per diluted
share, from $5.2 million, or $0.56 per diluted share, for the corresponding
period a year ago.

Cash, cash equivalents and investments totaled $43.6 million at September 30,
2013, down from $55.5 million on December 31, 2012. This includes the final
net amount retained from the December 2012, $45 million favorable settlement
relating to auction-rate securities, after paying $13.8 million of associated
income taxes and $6.75 million in attorneys' fees. The cash balance also
includes $272,000 successfully recovered from money held in escrow related to
the VCON acquisition.

The company continues to take a calculated approach to evaluating its options,
consistent with the company's strategy, to use this capital to maximize value
to shareholders. This quarter, ClearOne advanced its stock repurchase plan,
acquiring 144,000 shares, bringing the 2013 total repurchase amount to
approximately $2.2 million against an allocation of $10 million.

"Despite the negative impact of continued macroeconomic weakness in EMEA and
the U.S. Government sequestration, we posted strong results, thanks to our
outstanding performance in North America and Asia Pacific," said Zee
Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. "This
strong performance is a testament to our core strategy, which relies on a
strategically-built portfolio of innovative products."

"This quarter, our suite of microphone products released during the last 12
months contributed significantly to the company's growth, including ClearOne's
game-changing Beamforming Microphone Array," Hakimoglu added. "We expect to
see additional new product growth in coming quarters from our new video
systems, which will begin shipping in the late fourth quarter."

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 voice and visual
communications. The performance and simplicity of its advanced comprehensive
solutions offer unprecedented levels of functionality, scalability and
reliability. 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 acquisitions or investments the company
may make to fuel growth, the purchase of common stock under the company's
stock repurchase program 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://investors.clearone.com

Contact:
Brent Johnson
Investor Relations
801-303-3577
brent.johnson@clearone.com

CLEARONE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)
                                               As of September  As of December
                                               30, 2013         31, 2012
ASSETS
Current assets:
Cash and cash equivalents                      $   18,190       $   55,509
Marketable securities                          2,017            —
Receivables, net of allowance for doubtful     8,442            8,388
accounts of $94 and $60, respectively
Inventories, net                               12,442           10,873
Deferred income taxes                          3,148            3,148
Prepaid expenses and other assets              1,673            1,369
Total current assets                           45,912           79,287
Long-term inventories, net                     1,120            1,955
Long-term marketable securities                23,359           —
Property and equipment, net                    2,006            1,708
Intangibles, net                               3,854            4,258
Goodwill                                       3,472            3,472
Deferred income taxes                          1,195            1,195
Other assets                                   77               64
Total assets                                   $   80,995       $   91,939
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable                               $   3,632        $   2,302
Accrued liabilities                            2,305            2,143
Income taxes payable                           —                14,782
Deferred product revenue                       4,105            3,593
Total current liabilities                      10,042           22,820
Deferred rent                                  326              422
Other long-term liabilities                    2,029            2,029
Total liabilities                              12,397           25,271
Shareholders' equity:
Common stock, par value $0.001, 50,000,000
shares authorized, 9,004,901 and 9,163,462     9                9
shares issued and outstanding
Additional paid-in capital                     38,955           40,430
Accumulated other comprehensive loss           (33)             —
Retained earnings                              29,667           26,229
Total shareholders' equity                     68,598           66,668
Total liabilities and shareholders' equity     $   80,995       $   91,939





CLEARONE, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in thousands, except per share values)
                            Quarter ended Sept 30,  Nine months ended Sept 30,
                            2013        2012        2013            2012
Revenue                     $  12,366   $  11,573   $   35,362      $  33,382
Cost of goods sold          4,921       4,856       14,054          13,464
Gross profit                7,445       6,717       21,308          19,918
Operating expenses:
Sales and marketing         2,220       1,821       6,575           6,209
Research and product        1,788       1,959       5,497           5,996
development
General and administrative  1,405       1,470       4,639           4,561
Proceeds from litigation,   (272)       —           (272)           (250)
net
Total operating expenses    5,141       5,250       16,439          16,516
Operating income            2,304       1,467       4,869           3,402
Other income (expense), net 85          29          117             40
Income before income taxes  2,389       1,496       4,986           3,442
Provision for income taxes  726         492         1,548           1,310
Net income                  $  1,663    $  1,004    $   3,438       $  2,132
Basic earnings per common   $  0.18     $  0.11     $   0.38        $  0.23
share
Diluted earnings per common $  0.18     $  0.11     $   0.36        $  0.23
share
Basic weighted average      9,027,764   9,113,713   9,090,903       9,106,455
shares outstanding
Diluted weighted average    9,406,941   9,193,574   9,485,808       9,219,161
shares outstanding
Comprehensive income:
Net income                  $  1,663    $  1,004    $   3,438       $  2,132
Unrealized gain (loss) on
available-for-sale          55          —           (33)            —
securities, net of tax
 Comprehensive income     $  1,718    $  1,004    $   3,405       $  2,132



CLEARONE, INC
UNAUDITED NON-GAAP NET INCOME AND RECONCILIATION OF GAAP TO NON-GAAP NET
INCOME

(Dollars in thousands, except per share values)
                            Quarter ended Sept 30,  Nine months ended Sept 30,
                            2013        2012        2013            2012
Revenue                     $  12,366   $  11,573   $   35,362      $  33,382
Cost of goods sold          4,919       4,854       14,048          13,461
Gross profit                7,447       6,719       21,314          19,921
Operating expenses:
Sales and marketing         2,199       1,806       6,520           6,164
Research and product        1,774       1,950       5,459           5,970
development
General and administrative  1,145       1,079       3,812           3,285
Proceeds from litigation    —           —           —               —
Total operating expenses    5,118       4,835       15,791          15,419
Operating income            2,329       1,884       5,523           4,502
Other income (expense),     85          29          117             40
net
Income before income taxes  2,414       1,913       5,640           4,542
Provision for income taxes  730         673         1,751           1,791
Non-GAAP Net income         $  1,684    $  1,240    $   3,889       $  2,751
Basic earnings per common   $  0.19     $  0.14     $   0.43        $  0.30
share
Diluted earnings per        $  0.18     $  0.13     $   0.41        $  0.30
common share
Basic weighted average      9,027,764   9,113,713   9,090,903       9,106,455
shares outstanding
Diluted weighted average    9,406,941   9,193,574   9,485,808       9,219,161
shares outstanding
GAAP Net Income             $  1,663    $  1,004    $   3,438       $  2,132
Adjustments:
Share-based compensation    79          65          205             176
Amortization of purchased   143         146         404             377
intangibles
Legal expenses for
litigation relating to
indemnification of former
officers, theft of our      50          162         234             526
intellectual property
claims and our claim for
damages
Acquisition related         25          44          83              271
expenses
Proceeds from litigation    (272)       —           (272)           (250)
Total of adjustments        25          417         654             1,100
before taxes
Income taxes affected by    4           181         203             481
the above adjustments
 Total adjustments     21          236         451             619
Non-GAAP Net Income         $  1,684    $  1,240    $   3,889       $  2,751



CLEARONE, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EBITDA

(Dollars in thousands, except per share values)
                            Quarter ended Sept 30,  Nine months ended Sept 30,
                            2013        2012        2013            2012
GAAP net income             $  1,663    $  1,004    $   3,438       $  2,132
Adjustments:
Provision for income taxes  726         492         1,548           1,310
Depreciation and            337         337         983             991
amortization
Non-GAAP EBITDA             2,726       1,833       5,969           4,433
Proceeds from litigation,
net of legal expenses and   (272)       —           (272)           (250)
special bonus to officers
Share-based compensation    79          65          205             176
Legal expenses for
litigation relating to
indemnification of former
officers, theft of our      50          162         234             526
intellectual property
claims and our claim for
damages
Acquisition related         25          44          83              271
expenses
Non-GAAP Adjusted EBITDA    $  2,608    $  2,104    $   6,219       $  5,156
Basic weighted average      9,027,764   9,113,713   9,090,903       9,106,455
shares outstanding
Diluted weighted average    9,406,941   9,193,574   9,485,808       9,219,161
shares outstanding
Basic Non-GAAP Adjusted     $  0.29     $  0.23     $   0.68        $  0.57
EBITDA per common share
Diluted Non-GAAP Adjusted   $  0.28     $  0.23     $   0.66        $  0.56
EBITDA per common share

SOURCE ClearOne

Website: http://www.clearone.com
 
Press spacebar to pause and continue. Press esc to stop.