ClearOne Reports Fiscal 2007 Second Quarter Financial Results
ClearOne Reports Fiscal 2007 Second Quarter Financial Results
January 25, 2007
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.
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FINANCIAL TABLES FOLLOW
CLEARONE COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands of dollars, except per share amounts)
December 31, June 30,
2006 2006
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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
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Total current assets 34,888 39,743
Property and equipment, net 2,817 1,647
Note receivable - long-term 126 -
Other assets 22 15
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Total assets $ 37,853 $ 41,405
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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
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Total current liabilities 8,946 10,865
Deferred Rent 933 -
Deferred income taxes, net 87 128
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Total liabilities 9,966 10,993
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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)
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Total shareholders' equity 27,887 30,412
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Total liabilities and shareholders' equity $ 37,853 $ 41,405
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CLEARONE COMMUNICATIONS, INC.
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
ClearOne Communications, Inc. Investor Relations, 801-303-3555 or PondelWilkinson Inc. Robert Jaffe, 310-279-5980Contact: