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): January 22, 2002
ClearOne Communications Inc.
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(Exact Name of Registrant as Specified in its Charter)
UTAH 0-17219 87-0398877
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
1825 Research Way, Salt Lake City, Utah 84119
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(Address of Principal Executive Offices) (Zip Code)
(801) 975-7200
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(Registrant's Telephone Number, Including Area Code)
Gentner Communications Corporation
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On January 22, 2002, ClearOne Communications, Inc., formerly "Gentner
Communications Corporation" (the "Company" or "ClearOne"), issued a press
release reporting the Company's financial results for the fiscal quarter ended
December 31, 2001. Set forth below is certain financial information reported by
ClearOne in the press release.
Financial Highlights From Continuing Operations
(unaudited)
Three Months Ended
12/31/01 12/31/00 Change
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Sales $ 12,582,299 $ 9,680,383 +30%
Net Income $ 1,491,881 $ 1,202,410 +24%
Diluted earnings per share $ 0.16 $ 0.13 +23%
Six Months Ended
12/31/01 12/31/00 Change
--------------------------------------------------------------------------
Sales $ 23,802,682 $ 19,013,379 +25%
Net income $ 2,903,587 $ 2,546,365 +14%
Diluted earnings per share $ 0.31 $ 0.28 +11%
For the second quarter ended December 31, 2001, ClearOne reported net
income from continuing operations of $1.5 million, or $0.16 per fully diluted
share, on sales of $12.6 million. This represents a 24 percent increase in net
income and a 30 percent increase in sales over the same quarter last year, for
which the company reported net income from continuing operations of $1.2
million, or $0.13 per fully diluted share, on sales of $9.7 million.
For the first six months of fiscal 2002, ClearOne reported net income from
continuing operations of $2.9 million, or $0.31 per fully diluted share, on
sales of $23.8 million. Comparatively, the company reported net income from
continuing operations of $2.5 million, or $0.28 per fully diluted share, on
sales of $19.0 million for the same period last year.
ClearOne Communications Inc.
Condensed Statement of Continuing Operations
(unaudited)
Three Months Ended Six Months Ended
12/31/01 12/31/00 12/31/01 12/31/00
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Sales $12,582,299 $ 9,680,383 $ 23,802,681 $19,013,379
Cost of goods sold 5,057,117 3,971,158 9,639,094 7,736,711
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Gross profit 7,525,182 5,709,225 14,163,587 11,276,668
Sales & marketing expenses 2,762,726 1,911,486 5,232,153 3,823,572
General & administrative expenses 1,279,119 1,405,979 2,558,786 2,497,052
Research & development expenses 1,169,573 555,600 1,921,523 1,040,495
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Total expenses 5,211,418 3,873,065 9,712,462 7,361,119
Operating Income 2,313,764 1,836,160 4,451,125 3,915,549
Other items 65,632 118,727 210,558 182,806
Income tax expense (887,515) (752,477) (1,758,096) (1,551,990)
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Net income $ 1,491,881 $ 1,202,410 $ 2,903,587 $ 2,546,365
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Basic earnings per share $ 0.17 $ 0.14 $ 0.33 $ 0.30
Fully diluted earnings per share $ 0.16 $ 0.13 $ 0.31 $ 0.28
Basic shares outstanding 8,985,255 8,579,626 8,800,239 8,567,730
Fully diluted shares outstanding 9,588,560 9,027,096 9,368,505 9,029,617
ClearOne Communications Inc.
Balance Sheet
12/31/01 6/30/01
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(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $26,801,367 $ 6,852,243
Accounts receivable 8,606,992 7,284,393
Inventory 4,894,930 4,132,034
Deferred taxes 246,000 247,402
Other current assets 806,457 779,648
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Total current assets 41,355,746 19,295,720
Property and equipment, net 3,855,540 3,696,615
Other assets, net 12,329,588 4,605,288
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Total assets $57,540,874 $ 27,597,623
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LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,585,340 $ 568,782
Accrued expenses 1,164,314 1,129,528
Accrued income taxes 253,219 421,749
Current portion of capital leases 101,506 181,827
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Total current liabilities 3,104,379 2,301,886
Capital lease obligations 17,110 48,227
Deferred consideration-Ivron 2,129,648 -
Deferred tax liability 746,000 746,000
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Total liabilities 5,997,137 3,096,113
Shareholders' equity:
Common stock 10,156 8,618
Additional paid-in capital 33,099,800 8,962,699
Retained earnings 18,433,781 15,530,193
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Total shareholders' equity 51,543,737 24,501,510
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Total liabilities and equity $57,540,874 $ 27,597,623
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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.
CLEARONE COMMUNICATIONS, INC.
(The Registrant)
By: Randall J. Wichinski
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Its: Chief Financial Officer