ClearOne Reports Fiscal 2007 Third Quarter Financial Results
"The company's improved financial performance reflected increased sales of our higher margin, market-leading professional audio conferencing products," said Zee Hakimoglu, president and chief executive officer of ClearOne. "We have stepped-up our efforts on communicating the unique attributes and differentiated value of our entire product line to industry professionals and end-users."
For the first nine months of fiscal 2007, revenue increased to $28.9 million from $26.2 million in the same period of fiscal 2006. Gross profit grew to $15.5 million from $13.4 million for the prior year period. Operating income was $1.8 million compared with an operating loss of $1.0 million in the same period last year. Net income rose to $3.0 million, or $0.25 per diluted share, which included income from discontinued operations of $304,000. This compares with net income for the prior year period of $2.6 million, or $0.21 per diluted share, which included income from discontinued operations of $1.8 million.
At March 31, 2007, the company had cash, cash equivalents, and marketable securities of $22.0 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 newerproducts 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 | ||||||
| (in thousands of dollars, except per share amounts) | ||||||
| Unaudited | ||||||
| March 31, | June 30, | |||||
2007 | 2006 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,312 | $ | 1,240 | ||
| Marketable securities | 20,650 | 20,550 | ||||
| Accounts receivable | 6,847 | 7,784 | ||||
| Note receivable | 160 | - | ||||
| Inventories, net | 6,953 | 6,614 | ||||
| Income tax receivable | - | 3,240 | ||||
| Deferred income taxes, net | 132 | 128 | ||||
| Prepaid expenses | 299 | 255 | ||||
| Net assets of discontinued operations | - | 565 | ||||
| Total current assets | 36,353 | 40,376 | ||||
| Property and equipment, net | 2,689 | 1,647 | ||||
| Note receivable - long-term | 85 | - | ||||
| Other assets | 13 | 15 | ||||
| Total assets | $ | 39,140 | $ | 42,038 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,946 | $ | 2,597 | ||
| Accrued taxes | 456 | - | ||||
| Accrued liabilities | 1,814 | 2,397 | ||||
| Deferred product revenue | 5,111 | 5,871 | ||||
| Total current liabilities | 9,327 | 10,865 | ||||
| Deferred rent | 894 | - | ||||
| Deferred income taxes, net | 132 | 128 | ||||
| Other long-term liabilities | 578 | 633 | ||||
| Total liabilities | 10,931 | 11,626 | ||||
| Shareholders' equity: | ||||||
Common stock, par value $0.001, 50,000,000 shares authorized, 10,881,262 and 12,184,727 shares issued and outstanding, respectively | 11 | 12 | ||||
| Additional paid-in capital | 47,578 | 52,764 | ||||
| Accumulated deficit | (19,380) | (22,364) | ||||
| Total shareholders' equity | 28,209 | 30,412 | ||||
| Total liabilities and shareholders' equity | $ | 39,140 | $ | 42,038 | ||
| CLEARONE COMMUNICATIONS, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (Unaudited) | ||||||||||||
| (in thousands of dollars, except per share amounts) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| March 31, | March 31, | March 31, | March 31, | |||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
| Product Revenue: | $ | 9,355 | $ | 8,278 | $ | 28,873 | $ | 26,158 | ||||
| Cost of goods sold: | 4,190 | 4,253 | 13,366 | 12,737 | ||||||||
| Gross profit | 5,165 | 4,025 | 15,507 | 13,421 | ||||||||
| Operating expenses: | ||||||||||||
| Marketing and selling | 2,004 | 1,920 | 5,711 | 5,542 | ||||||||
| General and administrative | 763 | 1,060 | 2,260 | 4,288 | ||||||||
| Settlement in shareholders' class action | - | - | - | (1,205) | ||||||||
| Research and product development | 1,848 | 2,201 | 5,782 |
| 5,778 | |||||||
| Total operating expenses | 4,615 | 5,181 | 13,753 | 14,403 | ||||||||
| Operating income (loss) | 550 | (1,156) | 1,754 | (982) | ||||||||
| Other income (expense), net: | 577 | 237 | 1,229 | 594 | ||||||||
| Income (loss) from continuing operations before income taxes | 1,127 | (919) | 2,983 | (388) | ||||||||
| (Provision) benefit from income taxes | (167) | 782 | (303) | 1,150 | ||||||||
| Income (loss) from continuing operations | 960 | (137) | 2,680 | 762 | ||||||||
| Discontinued operations: | ||||||||||||
| Income from discontinued operations | - | 50 | 495 | 268 | ||||||||
| Gain (loss) on disposal of discontinued operations | 420 | 1,030 | (10) | 2,676 | ||||||||
| Income tax provision | (157) | (403) | (181) | (1,098) | ||||||||
| Income from discontinued operations: | 263 | 677 | 304 | 1,846 | ||||||||
| Net income | $ | 1,223 | $ | 540 | $ | 2,984 | $ | 2,608 | ||||
Three Months Ended | Nine Months Ended | |||||||||||
| March 31, | March 31, | March 31, | March 31, | |||||||||
2007 | 2006 | 2007 | 2006 | |||||||||
| Basic earnings per common share from continuing operations | $ | 0.09 | $ | (0.01) | $ | 0.23 | $ | 0.06 | ||||
| Diluted earnings per common share from continuing operations | $ | 0.09 | $ | (0.01) | $ | 0.23 | $ | 0.06 | ||||
| Basic earnings per common share from discontinued operations | $ | 0.02 | $ | 0.06 | $ | 0.03 | $ | 0.16 | ||||
| Diluted earnings per common share from discontinued operations | $ | 0.02 | $ | 0.06 | $ | 0.03 | $ | 0.15 | ||||
| Basic earnings per common share | $ | 0.11 | $ | 0.04 | $ | 0.25 | $ | 0.22 | ||||
| Diluted earnings per common share | $ | 0.11 | $ | 0.04 | $ | 0.25 | $ | 0.21 | ||||
| Basic weighted average shares | 10,994,607 | 12,184,727 | 11,705,853 | 11,882,375 | ||||||||
| Diluted weighted average shares | 11,101,791 | 12,187,446 | 11,770,145 | 12,214,401 | ||||||||