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): October 14, 2009
ClearOne Communications, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Utah
(State or Other Jurisdiction of Incorporation)
|
001-33660 |
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))
Item 2.02 Results of Operations and Financial Condition.
On October 14, 2009, ClearOne Communications, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and full-year ended June 30, 2009. 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.
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Exhibit No. |
Title of Document |
Location |
|
99.1 |
Press Release dated October 14, 2009 captioned “ClearOne Reports Fiscal 2009 Fourth Quarter and Full-Year 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: October 16, 2009 |
By: |
/s/ Narsi Narayanan |
|
Narsi Narayanan | ||
|
Vice President of Finance | ||
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Contact: ClearOne Communications, Inc.
Investor Relations
(801) 303-3555
CLEARONE REPORTS FISCAL 2009 FOURTH QUARTER
AND FULL-YEAR FINANCIAL RESULTS
Salt Lake City, UT – October 14, 2009 – ClearOne Communications, Inc. (NASDAQ: CLRO) today reported financial results for the fourth quarter and fiscal year ended June 30, 2009.
Full Year Results
Revenue for fiscal 2009 was $35.7 million compared with $38.8 million in fiscal 2008. Gross profit, which included a $2.3 million inventory write-off, was $20.4 million, or 57% of revenue, compared with gross profit for fiscal 2008, which included a $136,000 inventory write-off, of $22.6 million, or 58% of revenue. Excluding
the inventory write-offs, gross profit was $22.7 million, or 64% of revenue, compared with fiscal 2008 gross profit of $22.7 million, or 59% of revenue. Operating income increased to $2.8 million from $1.1 million last year. Operating income was $2.8 million compared with $1.1 million in the same period of fiscal 2008. Net income was $2.2 million, or $0.24 per diluted share, compared with fiscal 2008 net income of $5.3 million, or $0.49 per diluted share, which included a gain
on the disposal of discontinued operations, net of tax, of $16,000.
“Our revenue in fiscal 2009 was impacted by global economic conditions, including a worldwide decline in technology spending,” said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. “Over the course of the last year however, we made substantive improvements to manufacturing efficiencies
and reduced overall expenses.
“Looking ahead, we are seeing signs of improvement. We are planning a number of key new product launches in fiscal 2010. We believe our broad and innovative product offering complements and adds value to the conferencing experience, including existing and emerging venues such as personal and web-based and collaborative
conferencing.”
In the fiscal 2009 fourth quarter, the company recognized the receipt of a $1.1 million insurance settlement payment. Financial results for fiscal 2008 included the reversal of a $4.7 million valuation allowance recorded against deferred tax assets and a $3.3 million accrual for a contingent liability associated with indemnification
agreements with two former officers.
Fourth Quarter Results
Revenue for the fiscal 2009 fourth quarter decreased to $7.1 million from $9.6 million in the same quarter of last year. Gross profit declined to $3.2 million, or 45% of revenue, from $5.5 million, or 58% of revenue, for the prior year period. Operating loss was $945,000 compared with $639,000 in the same period of fiscal
2008. Net loss was $402,000, or $0.04 per share, versus fiscal 2008 fourth quarter net income of $3.2 million, or $0.31 per diluted share.
At June 30, 2009, the company had cash, cash equivalents, and investments of $11.9 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.
CLEARONE COMMUNICATIONS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands of dollars, except per share amounts)
|
Three Months |
||||||||||||||||
|
Ended June 30, |
Years Ended June 30, |
|||||||||||||||
|
2009 |
2008 |
2009 |
2008 |
|||||||||||||
|
Revenue |
$ | 7,060 | $ | 9,572 | $ | 35,700 | $ | 38,758 | ||||||||
|
Cost of goods sold |
3,887 | 4,029 | 15,323 | 16,204 | ||||||||||||
|
Gross profit |
3,173 | 5,543 | 20,377 | 22,554 | ||||||||||||
|
Operating expenses: |
||||||||||||||||
|
Sales & marketing |
1,928 | 1,853 | 7,529 | 6,673 | ||||||||||||
|
Research and product development |
2,111 | 2,394 | 7,541 | 7,070 | ||||||||||||
|
General and administrative |
1,179 | 1,935 | 3,631 | 7,669 | ||||||||||||
|
Lumbermens Settlement |
(1,100 | ) | - | (1,100 | ) | - | ||||||||||
|
Total operating expenses |
4,118 | 6,182 | 17,601 | 21,412 | ||||||||||||
|
Operating income (loss) |
(945 | ) | (639 | ) | 2,776 | 1,142 | ||||||||||
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Total other income (expense), net |
225 | 157 | 446 | 1,005 | ||||||||||||
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Income from continuing operations before income taxes |
(720 | ) | (482 | ) | 3,222 | 2,147 | ||||||||||
|
(Provision) benefit for income taxes |
318 | 3,711 | (995 | ) | 3,096 | |||||||||||
|
Income from continuing operations |
(402 | ) | 3,229 | 2,227 | 5,243 | |||||||||||
|
Income from discontinued operations |
- | - | - | 16 | ||||||||||||
|
Net income (loss) |
$ | (402 | ) | $ | 3,229 | $ | 2,227 | $ | 5,259 | |||||||
|
Diluted earnings (loss) per common share from continuing operations |
$ | (0.04 | ) | $ | 0.31 | $ | 0.24 | $ | 0.49 | |||||||
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Diluted earnings per common share from discontinued operations |
$ | - | $ | - | $ | - | $ | 0.00 | ||||||||
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Diluted earnings per common share |
$ | (0.04 | ) | $ | 0.31 | $ | 0.24 | $ | 0.49 | |||||||
|
Diluted weighted average shares outstanding |
9,047,260 | 10,424,149 | 9,338,320 | 10,798,281 | ||||||||||||
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