ClearOne Reports First Quarter 2010 Financial Results
Revenue for the 2010 first quarter increased to $8.4 million from $7.6 million in the same quarter of last year. Gross profit grew to $5.2 million, or 62% of revenue, from $4.1 million, or 53% of revenue, for the prior year period, primarily due to reduction in inventory write-offs and obsolescence. Operating income was $457,000 compared with $430,000 in the same period of fiscal 2009. Net income was $217,000, or $0.02 per diluted share, compared with $360,000, or $0.04 per diluted share.
"In the 2010 first quarter, revenue increased primarily due to the addition of NetStreams products to our portfolio, new product introductions and the continued rise in sales of our personal products," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "Operating expenses increased as we continued to make investments in both NetStreams sales channel and product development. We reduced general and administrative (G&A) expenses, if the reversal of contingent liabilities is excluded from G&A expenses in last year's first quarter, largely due to lower legal costs. Furthermore, we trimmed long-term inventory levels by more than $1.0 million and our cash position remained strong at $9.4 million, even after repaying $2 million of debt assumed as part of the NetStreams acquisition."
About ClearOne
ClearOne is a global communications solutions company that develops and sells conferencing, collaboration, streaming media and connectivity systems and other related products for audio, video, and web applications. The reliability, flexibility, and performance of our comprehensive solutions enhance the quality of life through better communication, education and entertainment.
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 statements regarding the company's ability to successfully commercialize newer products and enter new markets, 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.
Contact: | ClearOne Communications, Inc. | |
Investor Relations | ||
(801) 303-3555 | ||
http://www.b2i.us/irpass.asp?BzID=509&to=ea&s=0
FINANCIAL TABLES FOLLOW | |
CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
(in thousands of dollars) | |||
(unaudited) | (audited) | ||
March 31, 2010 | December 31, 2009 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $9,428 | $9,494 | |
Receivables, net of allowance for doubtful accounts | 6,636 | 6,571 | |
Inventories, net | 6,468 | 6,236 | |
Deferred income taxes | 3,152 | 3,128 | |
Prepaid expenses and other assets | 760 | 1,609 | |
Total current assets | 26,444 | 27,038 | |
Long-term inventories | 5,172 | 6,412 | |
Property and equipment, net | 3,059 | 3,246 | |
Intangibles, net | 3,008 | 3,095 | |
Goodwill | 726 | 726 | |
Long-term deferred tax asset | 1,093 | 1,037 | |
Other assets | 21 | 21 | |
Total assets | $39,523 | $41,575 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $1,586 | $2,304 | |
Accrued liabilities | 2,131 | 1,768 | |
Current maturities of long-term debt | - | 2,000 | |
Deferred product revenue | 4,836 | 4,707 | |
Total current liabilities | 8,553 | 10,779 | |
Deferred rent | 428 | 466 | |
Other long-term liabilities | 1,152 | 1,232 | |
Total liabilities | 10,133 | 12,477 | |
Total shareholders' equity | 29,390 | 29,098 | |
Total liabilities and shareholders' equity | $39,523 | $41,575 | |
CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(in thousands of dollars, except per share amounts) | |||
(unaudited) | |||
Quarters ended March 31, | |||
2010 | 2009 | ||
Revenue | $8,356 | $7,602 | |
Cost of goods sold | 3,161 | 3,549 | |
Gross profit | 5,195 | 4,053 | |
Operating expenses: | |||
Sales & Marketing | 1,902 | 1,690 | |
Research and product development | 1,904 | 1,810 | |
General and administrative | 932 | 123 | |
Total operating expenses | 4,738 | 3,623 | |
Operating income (loss) | 457 | 430 | |
Other expense (income), net | (132) | 60 | |
Income before income taxes | 325 | 490 | |
Provision for income taxes | (108) | (130) | |
Net Income | 217 | 360 | |
Basic earnings (loss) per common share | $0.02 | $0.04 | |
Diluted earnings (loss) per common share | $0.02 | $0.04 | |
Basic weighted average shares outstanding | 8,929,174 | 8,914,000 | |
Diluted weighted average shares outstanding | 9,036,225 | 9,032,383 | |
SOURCE ClearOne Communications, Inc.