ClearOne Reports Fiscal 2008 First Quarter Results
results for the first quarter of fiscal 2008 ended September 30, 2007.
Revenue for the first three months of fiscal 2008 amounted to $9.4
million, the same as in the comparable prior year period. Gross profit
was $5.1 million, or 54% of revenues, for both the fiscal 2008 and 2007
first quarters. Gross margin as a percentage of revenues in the fiscal
2008 first quarter decreased slightly compared with the two preceding
quarters, due to an increase in the company's
reserve for inventory obsolescence required to account for slow-moving
inventory and other manufacturing variances.
The company reported an operating loss for the fiscal 2008 first quarter
of $1.1 million after estimating and establishing a $1.8 million accrual
for a contingent liability. This compares to operating income of
$289,000 in the fiscal 2007 first quarter. Net loss was $924,000, or
$0.08 per share, compared to net income of $677,000, or $0.06 per
diluted share, for the same period last year.
"Excluding the fiscal 2008 first quarter
accrual for the contingent liability, the company would have reported an
operating profit and improved bottom line performance compared with the
prior year first quarter," said Zee Hakimoglu,
president, chief executive officer and chairman of ClearOne. "This
is due, in part, to our continued focus on enhancing operating
efficiencies and managing expenses."
In accordance with Statement of Financial Accounting Standards No. 5, Accounting
for Contingencies, ClearOne accrued $1.8 million in its fiscal 2008
first quarter, representing the probable amount that as of the date of
the financial statements could be reasonably estimated of its liability,
through trial, associated with the advancement of funds related to
indemnification agreements with two former officers. As disclosed in
July 2007, ClearOne was informed that two of its former officers have
been indicted by the United States Attorney's
Office for the District of Utah. The company has been advised that a
trial date has been set for January 22, 2008. ClearOne is cooperating
fully with the U.S. Attorney's office in this
matter and has been advised that it is neither a target nor a subject of
the investigation or indictment.
At September 30, 2007, the company had cash, cash equivalents, and
marketable securities of $23.6 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.
http://www.b2i.us/irpass.asp?BzID=509&to=ea&s=0
CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
(in thousands of dollars) | |||
(unaudited) | (audited) | ||
September 30, | June 30, | ||
2007 | 2007 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $2,506 | $2,782 | |
Marketable securities | 21,102 | 19,871 | |
Accounts receivable, net of allowance for doubtful accounts of $56 and $54, respectively | 8,053 | 8,025 | |
Note Receivable | 166 | 163 | |
Inventories, net | 7,490 | 7,263 | |
Income tax receivable | 326 | 0 | |
Deferred income taxes | 122 | 0 | |
Prepaid expenses | 336 | 213 | |
Total current assets | 40,101 | 38,317 | |
Property and equipment, net | 2,619 | 2,694 | |
Note Receiveable - long-term | 0 | 43 | |
Other assets | 9 | 9 | |
Total assets | $42,729 | $41,063 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $2,198 | $1,745 | |
Accrued taxes | 0 | 660 | |
Accrued liabilities | 3,411 | 1,874 | |
Deferred product revenue | 5,875 | 4,872 | |
Total current liabilities | 11,484 | 9,151 | |
Deferred rent | 816 | 855 | |
Deferred income taxes, net | 122 | 0 | |
Other long-term liabilities | 958 | 619 | |
Total liabilities | 13,380 | 10,625 | |
Total shareholders' equity | 29,349 | 30,438 | |
Total liabilities and shareholders' equity | $42,729 | $41,063 |
CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(in thousands of dollars, except per share amounts) | |||
(unaudited) | |||
Three Months Ended | |||
2007 | 2006 | ||
Revenue | $9,442 | $9,411 | |
Cost of goods sold | 4,299 | 4,316 | |
Gross profit | 5,143 | 5,095 | |
Operating expenses: | |||
Marketing and selling | 1,601 | 1,918 | |
Research and product development | 1,756 | 2,079 | |
General and administrative | 2,895 | 809 | |
Total operating expenses | 6,252 | 4,806 | |
Operating income (loss) | (1,109) | 289 | |
Total other income, net | 341 | 332 | |
Income (loss) from continuing operations before income taxes | (768) | 621 | |
(Provision) benefit for income taxes | (171) | 19 | |
Income (loss) from continuing operations | (939) | 640 | |
Income from discontinued operations | 15 | 37 | |
Net income (loss) | ($924) | $677 | |
Basic earnings (loss) per common share | ($0.08) | $0.06 | |
Diluted earnings (loss) per common share | ($0.08) | $0.06 | |
Basic weighted average shares outstanding | 10,961,256 | 12,184,849 | |
Diluted weighted average shares outstanding | 11,072,565 | 12,231,744 |