SALT LAKE CITY, Oct. 24, 2013 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported its financial results for the third quarter ended September 30, 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

 

 

 

 

SOURCE ClearOne