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): November 15, 2010
ClearOne Communications, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Utah
(State or Other Jurisdiction of Incorporation)
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001-33660
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87-0398877
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(Commission File Number)
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(I.R.S. employer
identification number)
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5225 Wiley Post Way, Suite 500
Salt Lake City, Utah
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84116
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(Address of principal executive offices)
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(Zip Code)
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(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)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
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Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange
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Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On November 15, 2010, ClearOne Communications, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2010. 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.
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Title of Document
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Location
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99.1
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Press Release dated November 15, 2010 captioned “ClearOne Reports Third Quarter 2010 Financial Results.”
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This Filing
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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.
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CLEARONE COMMUNICATIONS, INC.
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Date: November 18, 2010
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By:
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/s/ Zee Hakimoglu
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Zee Hakimoglu
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President & CEO
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Contact:
ClearOne Communications, Inc.
Investor Relations
(801) 303-3555
CLEARONE REPORTS THIRD QUARTER 2010 FINANCIAL RESULTS
Salt Lake City, UT – November 15, 2010 – ClearOne Communications, Inc. (NASDAQ: CLRO) today reported financial results for the third quarter ended September 30, 2010.
For the 2010 third quarter, revenue increased 35% to $10.4 million from $7.6 million in the same quarter of last year. Gross profit rose to $6.3 million, or 60% of revenue, from $4.0 million, or 52% of revenue, for the prior year period. Operating income was $781,000 compared to an operating loss of $646,000 in the same period of 2009. Net income was $987,000, or $0.11 per diluted share, versus net loss of $275,000, or $0.03 per share, for the third quarter of 2009.
“We continue to produce strong financial results evident from our 2010 third quarter financial results. A number of factors contributed to this performance,” said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. “Our top and bottom line improved due to continued momentum for our professional conferencing line, steady growth in demand for our products overseas and the contribution of new products introduced during the past 12 months. Also during the quarter, we initiated a transition from distribution to a direct-to-dealer channel model for our NetStreams offering. We continue to make investments in NetStreams’ sales channel and product development, and believe its technology is compelling.”
For the first nine months of 2010, revenue increased 28% to $28.7 million from $22.3 million for the same period of 2009. Gross profit was $17.1 million, or 60% of revenue, compared with $11.2 million, or 50% of revenue, for the comparable prior year period. Operating income was $1.8 million compared to an operating loss of $1.2 million for the first nine months of 2009. Net income was $1.6 million, or $0.17 per diluted share, compared with a net loss of $317,000, or $0.04 per share, for the same period last year.
About ClearOne
ClearOne is a global communications solutions company that develops and sells conferencing, collaboration, streaming media and connectivity systems for audio, video, and web applications. The reliability, flexibility and performance of our advanced comprehensive solutions enhance the quality of life through better communication, education, and entertainment.
ClearOne develops, manufactures, markets and services a comprehensive line of high-quality audio conferencing products under personal, tabletop, premium and professional (installed audio) categories. The company occupies the number one position in the professional audio conferencing market. ClearOne’s conferencing solutions save organizations time and money by creating a natural environment for collaboration.
NetStreams, recently acquired by ClearOne, delivers the ultimate IP A/V experience by distributing high definition audio and video over TCP/IP networks. NetStreams' products, designed for commercial and residential use, offer unprecedented levels of performance, functionality, simplicity, reliability, and expandability. By combining audio/video content, meta-data and control signals into one stream and incorporating industry standards, NetStreams' newly patented StreamNet® solutions are a smart investment, enabling the Power of AV over IP™ – today.
NetStreams' StreamNet technology provides elegant solutions for streaming media & control applications such as digital signage, distribution of HD video and audio, LAN Cloud Matrix Switching™, and audio paging over data networks.
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 f
orward-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
FINANCIAL TABLES FOLLOW
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands of dollars, except per share amounts)
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UNAUDITED
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Three months ended
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Nine months ended
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Sep 30, 2010
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Sep 30, 2009
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Sep 30, 2010
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Sep 30, 2009
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Revenue
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$ 10,359
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$ 7,646
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$ 28,652
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$ 22,308
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Cost of goods sold
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4,105
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3,692
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11,542
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11,127
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Gross profit
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6,254
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3,954
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17,110
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11,181
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Operating expenses:
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Sales and marketing
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2,243
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1,603
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6,328
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5,222
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Research and product development
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2,124
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1,668
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5,772
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5,589
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General and administrative
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1,106
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1,329
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3,252
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2,632
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Insurance settlement
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-
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-
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-
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(1,100)
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Total operating expenses
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5,473
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4,600
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15,352
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12,343
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Operating income (loss)
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781
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(646)
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1,758
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(1,162)
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Other income (expense), net
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12
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67
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(120)
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352
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Income (loss) before income taxes
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793
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(579)
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1,638
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(810)
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Benefit from (provision for) income taxes
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194
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304
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(81)
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493
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Net income (loss)
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$ 987
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$ (275)
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$ 1,557
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$ (317)
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Basic earnings (loss) per common share
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$ 0.11
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$ (0.03)
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$ 0.17
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$ (0.04)
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Diluted earnings (loss) per common share
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$ 0.11
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$ (0.03)
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$ 0.17
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$ (0.04)
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Basic weighted average shares outstanding
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8,929,342
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8,928,897
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8,929,266
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8,923,869
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Diluted weighted average shares outstanding
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9,108,102
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9,052,070
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9,095,879
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9,043,977
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CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(in thousands of dollars, except per share amounts)
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Unaudited
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Audited
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As of
Sep 30, 2010
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As of
Dec 31, 2009
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ 11,516
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$ 9,494
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Receivables, net of allowance for doubtful accounts of $310 and $103, respectively
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8,805
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6,571
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Inventories, net
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6,024
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6,236
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Deferred income taxes
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3,340
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3,128
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Prepaid expenses and other assets
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357
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1,609
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Total current assets
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30,042
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27,038
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Long-term inventory
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4,135
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6,412
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Property and equipment, net
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3,151
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3,246
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Intangibles
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2,832
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3,095
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Goodwill
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726
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726
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Deferred income taxes
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622
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1,037
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Other assets
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18
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21
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Total assets
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$ 41,526
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$ 41,575
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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2,188
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2,304
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Accrued liabilities
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2,855
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1,768
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Current maturities of long-term debt
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-
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2,000
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Deferred product revenue
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4,699
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4,707
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Total current liabilities
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9,742
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10,779
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Deferred rent
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608
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466
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Other long-term liabilities
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297
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1,232
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Total liabilities
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10,647
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12,477
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Shareholders' equity:
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Common stock, par value $0.001, 50,000,000 shares authorized, 8,929,350 and 8,929,134 shares issued and outstanding, respectively
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9
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9
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Additional paid-in capital
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39,034
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38,810
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Accumulated deficit
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(8,164)
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(9,721)
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Total shareholders' equity
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30,879
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29,098
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Total liabilities and shareholders' equity
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$ 41,526
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$ 41,575
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Contact::
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ClearOne Communications, Inc.
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Investor Relations
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(801) 303-3555
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