UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of
report (Date of earliest event reported): January
25, 2007
ClearOne
Communications, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Utah
(State
or
Other Jurisdiction of Incorporation)
|
000-17219
|
87-0398877
|
|
|
(Commission
File Number)
|
(I.R.S.
employer
identification
number)
|
|
5225
Wiley Post Way, Suite 500
Salt
Lake City, Utah
|
84116
|
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(801)
975-7200
(Registrant’s
Telephone Number, Including Area Code)
Not
applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17
CFR 240.14d-2(b))
[
]
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange
Act
(17
CFR 240.13e-4(c))
1
Item
2.02 Results of Operations and Financial Condition.
On
January 25, 2007, ClearOne Communications, Inc. (the “Company”) issued a press
release announcing its financial results for the second quarter ended December
31, 2006. The full text of the Company’s press release is furnished herewith as
Exhibit 99.1.
Item
9.01 Financial
Statements and Exhibits.
(d) Exhibits.
|
Exhibit
No.
|
Title
of Document
|
Location
|
|
99.1
|
Press
Release dated January 25, 2007 captioned “ClearOne Reports Fiscal 2007
Second Quarter Financial Results.”
|
This
Filing
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
CLEARONE
COMMUNICATIONS, INC.
|
||
|
Date:
January 25, 2007
|
By:
|
/s/
Greg A. LeClaire
|
|
Greg
A. LeClaire
|
||
|
Vice
President of Finance
|
||
2
Contacts:
ClearOne
Communications, Inc.
Investor
Relations
(801)
303-3555
Robert
Jaffe
PondelWilkinson
Inc.
(310)
279-5980
CLEARONE
REPORTS FISCAL 2007 SECOND QUARTER FINANCIAL RESULTS
Salt
Lake City, UT - January 25, 2007 - ClearOne
Communications, Inc. (OTC: CLRO.OB) today reported financial results for
the
second quarter of fiscal 2007 ended December 31, 2006.
For
the
fiscal 2007 second quarter, revenue increased to $10.1 million from $9.1
million
in the same quarter of last year. Gross profit grew to $5.2 million from
$4.6
million for the prior year period. Operating income was $915,000 compared
with
an operating loss of $413,000 in the same quarter last year. Net income was
$1.1
million, or $0.09 per diluted share, compared with net income for the prior
year
period of $81,000, or $0.01 per diluted share, which included income from
discontinued operations of $157,000.
“During
the second quarter, higher revenues and enhanced gross margins led to a
significantly improved bottom line,” said Zee Hakimoglu, president and chief
executive officer of ClearOne. “We also successfully completed a tender offer,
repurchasing more than one million shares of the company’s common stock, and
took an important step to facilitate future growth by moving to a new corporate
headquarters that has increased space for product development.”
For
the
first six months of fiscal 2007, revenue increased to $19.5 million from
$17.9
million in the same period of fiscal 2006. Gross profit grew to $10.3 million
from $9.4 million for the prior year period. Operating income was $1.2 million
compared with operating income of $174,000 in the same period last year.
Net
income was $1.8 million, or $0.15 per diluted share, compared with net income
for the prior year period of $2.1 million, or $0.17 per diluted share, which
included income from discontinued operations of $1.2 million.
At
December 31, 2006, the company had cash, cash equivalents, and marketable
securities of $18.3 million and no long-term debt.
About
ClearOne
ClearOne
is a communications solutions company that develops and sells audio conferencing
systems and other related products for audio, video, and web conferencing
applications. The reliability, flexibility, and performance of ClearOne’s
comprehensive solutions create a natural communications environment, which
saves
organizations time and money by enabling more effective and efficient
communication. For more information, visit ClearOne’s website 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 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.
#
#
#
FINANCIAL
TABLES FOLLOW
1
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||||||
|
(Unaudited)
|
|||||||
|
(in
thousands of dollars, except per share amounts)
|
|||||||
|
December
31,
|
June
30,
|
||||||
|
2006
|
2006
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
1,840
|
$
|
1,240
|
|||
|
Marketable
securities
|
16,500
|
20,550
|
|||||
|
Accounts
receivable
|
7,682
|
7,784
|
|||||
|
Note
receivable
|
156
|
-
|
|||||
|
Inventories,
net
|
5,909
|
6,614
|
|||||
|
Income
tax receivable
|
2,392
|
2,607
|
|||||
|
Deferred
income taxes, net
|
87
|
128
|
|||||
|
Prepaid
expenses
|
322
|
255
|
|||||
|
Net
Assets of Discontinued Operations
|
-
|
565
|
|||||
|
Total
current assets
|
34,888
|
39,743
|
|||||
|
Property
and equipment, net
|
2,817
|
1,647
|
|||||
|
Note
receivable - long-term
|
126
|
-
|
|||||
|
Other
assets
|
22
|
15
|
|||||
|
Total
assets
|
$
|
37,853
|
$
|
41,405
|
|||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
2,083
|
$
|
2,597
|
|||
|
Accrued
liabilities
|
2,152
|
2,397
|
|||||
|
Deferred
product revenue
|
4,711
|
5,871
|
|||||
|
Total
current liabilities
|
8,946
|
10,865
|
|||||
|
Deferred
Rent
|
933
|
-
|
|||||
|
Deferred
income taxes, net
|
87
|
128
|
|||||
|
Total
liabilities
|
9,966
|
10,993
|
|||||
|
Shareholders'
equity:
|
|||||||
|
Common
stock, par value $0.001, 50,000,000 shares authorized,
|
|||||||
|
11,072,349
and 12,184,727 shares issued and outstanding, respectively
|
11
|
12
|
|||||
|
Additional
paid-in capital
|
48,479
|
52,764
|
|||||
|
Accumulated
deficit
|
(20,603
|
)
|
(22,364
|
)
|
|||
|
Total
shareholders' equity
|
27,887
|
30,412
|
|||||
|
Total
liabilities and shareholders' equity
|
$
|
37,853
|
$
|
41,405
|
|||
2
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||
|
(in
thousands of dollars, except per share amounts)
|
|||||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
|
December
31,
|
December
31,
|
December
31,
|
December
31,
|
||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
Product
Revenue:
|
$
|
10,107
|
$
|
9,102
|
$
|
19,518
|
$
|
17,880
|
|||||
|
Cost
of goods sold:
|
4,860
|
4,470
|
9,176
|
8,484
|
|||||||||
|
Gross
profit
|
5,247
|
4,632
|
10,342
|
9,396
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Marketing
and selling
|
1,789
|
1,810
|
3,707
|
3,622
|
|||||||||
|
General
and administrative
|
688
|
1,457
|
1,497
|
3,228
|
|||||||||
|
Settlement
in shareholders' class action
|
-
|
-
|
-
|
(1,205
|
)
|
||||||||
|
Research
and product development
|
1,855
|
1,778
|
3,934
|
3,577
|
|||||||||
|
Total
operating expenses
|
4,332
|
5,045
|
9,138
|
9,222
|
|||||||||
|
Operating
income (loss)
|
915
|
(413
|
)
|
1,204
|
174
|
||||||||
|
Other
income (expense), net:
|
|||||||||||||
|
Interest
income
|
283
|
186
|
590
|
345
|
|||||||||
|
Other,
net
|
37
|
5
|
62
|
12
|
|||||||||
|
Other
income (expense), net:
|
320
|
191
|
652
|
357
|
|||||||||
|
Income
(loss) from continuing operations before income taxes
|
1,235
|
(222
|
)
|
1,856
|
531
|
||||||||
|
(Provision)
benefit from income taxes
|
(155
|
)
|
146
|
(136
|
)
|
368
|
|||||||
|
Income
(loss) from continuing operations
|
1,080
|
(76
|
)
|
1,720
|
899
|
||||||||
|
Discontinued
operations:
|
|||||||||||||
|
Income
from discontinued operations
|
20
|
100
|
75
|
218
|
|||||||||
|
Gain
on disposal of discontinued operations
|
(13
|
)
|
150
|
(10
|
)
|
1,646
|
|||||||
|
Income
tax provision
|
(3
|
)
|
(93
|
)
|
(24
|
)
|
(695
|
)
|
|||||
|
Income
from discontinued operations:
|
4
|
157
|
41
|
1,169
|
|||||||||
|
Net
income
|
$
|
1,084
|
$
|
81
|
$
|
1,761
|
$
|
2,068
|
|||||
|
Basic
earnings per common share from continuing operations
|
$
|
0.09
|
$
|
(0.01
|
)
|
$
|
0.14
|
$
|
0.08
|
||||
|
Diluted
earnings per common share from continuing operations
|
$
|
0.09
|
$
|
(0.01
|
)
|
$
|
0.14
|
$
|
0.07
|
||||
|
Basic
earnings per common share from discontinued operations
|
$
|
0.00
|
$
|
0.01
|
$
|
0.00
|
$
|
0.10
|
|||||
|
Diluted
earnings per common share from discontinued operations
|
$
|
0.00
|
$
|
0.01
|
$
|
0.00
|
$
|
0.10
|
|||||
|
Basic
earnings per common share
|
$
|
0.09
|
$
|
0.01
|
$
|
0.15
|
$
|
0.18
|
|||||
|
Diluted
earnings per common share
|
$
|
0.09
|
$
|
0.01
|
$
|
0.15
|
$
|
0.17
|
|||||
|
Basic
weighted average shares
|
11,922,641
|
12,184,727
|
12,053,745
|
11,734,485
|
|||||||||
|
Diluted
weighted average shares
|
11,957,706
|
12,195,466
|
12,100,794
|
12,230,035
|
|||||||||
3