Welcome!

News Feed Item

ClearOne Reports Second Quarter Results

ClearOne Reports record 21% Revenue Growth with Continued Profitability

SALT LAKE CITY, Aug. 12, 2014 /PRNewswire/ -- 

Second Quarter 2014 Highlights


  • Achieved record second quarter revenue of $14.1 million, up 21% year over year
  • Non-GAAP net income for second quarter up 10% year over year
  • Spontania acquisition closed on April 1, 2014 following acquisition of Sabine in March 2014
  • Results include full quarter operations of Sabine and Spontania acquisitions
  • Began shipping next generation enterprise streaming and media collaboration products and received positive market response

Financial Summary





(Dollars in thousands, except per share values)

Second Quarter


Year to Date


2014


2013


Change


2014


2013


Change

Revenue

$

14,111


$

11,703


21%


$

26,819


$

22,996


17%

Gross Profit

8,064


6,864


17%


15,766


13,863


14%

Non-GAAP Operating Income

1,615


1,786


(10)%


2,994


3,193


(6)%

Non-GAAP Net Income

1,366


1,240


10%


2,197


2,205


Non-GAAP Adjusted EBITDA

1,874


2,038


(8)%


3,490


3,611


(3)%

Non-GAAP Diluted EPS

$

0.14


$

0.13


8%


$

0.23


$

0.23


















ClearOne (NASDAQ: CLRO), a global provider of audio and visual communication solutions, today reported financial results for the three and six months ended June 30, 2014.

For the 2014 second quarter, revenue increased by 21% to $14.1 million, compared with $11.7 million for the second quarter of 2013.  Gross profit for the second quarter was $8.1 million, or 57% of revenue, compared with $6.9 million, or 59% of revenue, for the second quarter of 2013. Non-GAAP operating income for the second quarter decreased by 10% to $1.6 million from $1.8 million for the second quarter of 2013. Non-GAAP net income increased 10% to $1.4 million, or $0.14 per diluted share, from $1.2 million, or $0.13 per diluted share, for the second quarter of 2013. Non-GAAP adjusted EBITDA for the 2014 second quarter decreased 8% to $1.9 million, or $0.19 per diluted share, from $2.0 million, or $0.22 per diluted share, or the second quarter of 2013.

For the six months ended June 30, 2014, revenue increased 17% to $26.8 million from $23.0 million for the six months ended June 30, 2013.  Gross profit increased by 14% to $15.8 million, or 59% of revenue, compared with $13.9 million, or 60% of revenue, for the six months ended June 30, 2013.  Non-GAAP operating income for the six months ended June 30, 2014 decreased by 6% to $3.0 million from $3.2 million for the six months ended June 30, 2013.  Non-GAAP net income for six months ended June 30, 2014 remained flat at $2.2 million, or $0.23 per diluted share, from $2.2 million, or $0.23 per diluted share, for the six months ended June 30, 2013.  Non-GAAP adjusted EBITDA decreased 3% to $3.5 million, or $0.36 per diluted share, from $3.6 million, or $0.38 per diluted share, for the six months ended June 30, 2013.

Cash, cash equivalents and investments totaled $32.3 million at June 30, 2014, down from $42.7 million on December 31, 2013. The decrease is primarily due to the acquisitions of Sabine and Spontania.

ClearOne continued its stock repurchase plan in the second quarter, bringing the total repurchase amount to approximately $4.0 million against an allocation of $10 million.

Gross margins in the quarter were within the lower end of the company's expected range. Gross margins were impacted by the periodic revision of overhead allocations as well as the ongoing integration of Sabine manufacturing operations, which were acquired in March 2014.

"ClearOne's impressive record revenue growth in this quarter was made possible due to contributions from our acquisitions and also from our flagship professional audio products.  Our results also reflect the full cost of our investments in internal operations and recent acquisitions. We believe the full benefits of these investments - in the form of higher revenue and higher profitability - will be realized in the quarters ahead," said Zee Hakimoglu, President and Chief Executive Officer. "As anticipated, at the end of the second quarter, we began shipping our new COLLABORATE® Room Pro Media Collaboration product and VIEW® Pro enterprise streaming system and received positive market response to both solutions. We have assembled the right portfolio of complementary and disruptive solutions that are opening new and attractive markets, differentiate ClearOne in the audio visual communications space and will drive our future revenue growth."

During Sabine's first full quarter as part of ClearOne, the company successfully integrated Sabine's sales channel into the ClearOne global channel.  In the second quarter, with the acquisition of Sabine, revenue from ClearOne's full suite of wireless microphone products more than quadrupled from a year ago and reached $1.3 million.

The company's acquisition of the Spontania cloud-based video collaboration business closed on April 1, 2014. Spontania offers multiple revenue streams, including annual subscriptions for cloud services, the sale of permanent licenses for on-premise solutions, and annual support and maintenance contracts. During this first quarter after acquiring the Spontania business, ClearOne achieved bookings of $216 thousand of which the company recognized revenue of $151 thousand. Bookings reflect amounts contractually accepted by customers and billed by ClearOne. However, a portion of bookings is not recognized in the current quarter as revenue, in accordance with U.S. GAAP requirements, and will be recognized over the life of the customer contracts. The company believes that reporting bookings provides valuable information to investors about the recurring revenue stream that the Spontania business is expected to provide. In the second half of the year, the company expects to achieve an additional $750 thousand to $1.0 million in bookings for Spontania-related products and services. ClearOne's Media Collaboration sales and marketing team, strengthened recently by the addition of industry veterans, focused on introducing Spontania solutions to the company's global channel.

At the end of the second quarter, ClearOne began shipping its new CONNECT® Dante™ product, which enables no-hassle connectivity of its flagship professional audio products to the fast emerging Dante enabled network ecosystem. Dante is a highly-interoperable, self-configuring, true plug-and-play digital audio networking technology that uses standard IP-based networking and components, such as Ethernet cables, routers and switches, to carry high capacity and high-resolution digital audio over a standard Ethernet network. Some of the largest live events and sophisticated installations worldwide use this technology, making audio signal distribution more cost-effective and user-friendly.

Finally, the company also launched at Infocomm 2014, CONVERGE® Matrix, its new sound reinforcement and distribution system, which opens new market opportunities for the company and complements its existing professional audio conferencing solutions. The company expects to begin shipping the product at the end of 2014.

Non-GAAP Financial Measures

ClearOne provides non-GAAP financial information in the form of non-GAAP net income, Adjusted EBITDA and corresponding earnings per share to investors to supplement GAAP financial information.  ClearOne believes that excluding certain items from GAAP results allows ClearOne's management to better understand ClearOne's consolidated financial performance from period to period as management does not believe that the excluded items are reflective of underlying operating performance.  Non-GAAP net income, Adjusted EBITDA and corresponding earnings per share excludes certain costs and expenses, the details of which are provided below in the tables containing the reconciliation between GAAP and non-GAAP financial measures.  The exclusion of these items in the non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.  ClearOne believes non-GAAP financial measures will provide investors with useful information to help them evaluate ClearOne's operating results and projections.  This non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating income, net income or other financial measures prepared in accordance with GAAP.  There are limitations to the use of non-GAAP financial measures.  Other companies, including companies in ClearOne's industry, may calculate non-GAAP financial measures differently than ClearOne does, limiting the usefulness of those measures for comparative purposes.  A detailed reconciliation of non-GAAP net income to GAAP net income is included with this release.

About ClearOne

ClearOne is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for voice and visual communications.  The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability.  More information about the company can be found 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 acquisitions or investments the company may make to fuel growth, the purchase of common stock under the company's stock repurchase program and any statements of the plans and objectives of management for future operations, 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.

Contact:
Investor Relations
801-303-3555
[email protected]

http://investors.clearone.com



CLEARONE, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)



As of June 30, 2014


As of December 31, 2013

ASSETS




Current assets:




Cash and cash equivalents

$

6,293


$

17,192

Marketable securities

5,401


3,200

Receivables, net of allowance for doubtful accounts of $107 and $129, respectively

10,187


9,378

Inventories, net

11,448


10,758

Distributor channel inventories

1,795


1,520

Deferred income taxes

3,378


3,325

Prepaid expenses and other assets

2,148


2,693

Total current assets

40,650


48,066

Long-term marketable securities

20,575


22,326

Long-term inventories, net

754


551

Property and equipment, net

2,182


1,825

Intangibles, net

9,035


3,710

Goodwill

12,549


3,472

Deferred income taxes

1,303


1,024

Other assets

99


87

Total assets

$

87,147


$

81,061

LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

2,580


$

2,730

Accrued liabilities

2,567


1,761

Deferred product revenue

5,244


4,158

Total current liabilities

10,391


8,649

Deferred rent

282


286

Other long-term liabilities

2,544


1,791

Total liabilities

13,217


10,726

Shareholders' equity:




Common stock, par value $0.001, 50,000,000 shares authorized, 9,235,494 and 8,986,080 shares issued and outstanding

9


9

Additional paid-in capital

44,513


41,311

Accumulated other comprehensive income

161


23

Retained earnings

29,247


28,992

Total shareholders' equity

73,930


70,335

Total liabilities and shareholders' equity

$

87,147


$

81,061



CLEARONE, INC.

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in thousands, except per share values)



Quarter ended June 30,


Six months ended June 30,


2014


2013


2014


2013

Revenue

$

14,111


$

11,703


$

26,819


$

22,996

Cost of goods sold

6,047


4,839


11,053


9,133

Gross profit

8,064


6,864


15,766


13,863









Operating expenses:








Sales and marketing

2,977


2,088


5,713


4,356

Research and product development

2,330


1,843


4,571


3,709

General and administrative

1,628


1,437


3,592


3,234

Total operating expenses

6,935


5,368


13,876


11,299









Operating income

1,129


1,496


1,890


2,564

Other income, net

64


47


145


33

Income before income taxes

1,193


1,543


2,035


2,597

Provision for income taxes

259


498


611


822

Net income

$

934


$

1,045


$

1,424


$

1,775









Basic earnings per common share

$

0.10


$

0.11


$

0.16


$

0.19

Diluted earnings per common share

$

0.10


$

0.11


$

0.15


$

0.19









Basic weighted average shares outstanding

9,266,071


9,093,461


9,174,816


9,122,996

Diluted weighted average shares outstanding

9,677,726


9,459,495


9,618,172


9,499,452









Comprehensive income:








Net income

$

934


$

1,045


$

1,424


$

1,775

Unrealized gain (loss) on available-for-sale securities, net of tax

65


(87)


138


(87)

   Comprehensive income

$

999


$

958


$

1,562


$

1,688



CLEARONE, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(Dollars in thousands, except per share values)



Quarter ended June 30,


Six months ended June 30,


2014


2013


2014


2013

Revenue

$

14,111


$

11,703


$

26,819


$

22,996

Cost of goods sold

6,045


4,837


11,049


9,129

Gross profit

8,066


6,866


15,770


13,867









Operating expenses:








Sales and marketing

2,957


2,069


5,673


4,322

Research and product development

2,320


1,830


4,550


3,685

General and administrative

1,174


1,181


2,553


2,667

Total operating expenses

6,451


5,080


12,776


10,674









Operating income

1,615


1,786


2,994


3,193

Other income (expense), net

64


47


145


33

Income before income taxes

1,679


1,833


3,139


3,226

Provision for income taxes

313


593


942


1,021

Non-GAAP Net income

$

1,366


$

1,240


$

2,197


$

2,205









Basic earnings per common share

$

0.15


$

0.14


$

0.24


$

0.24

Diluted earnings per common share

$

0.14


$

0.13


$

0.23


$

0.23









Basic weighted average shares outstanding

9,266,071


9,093,461


9,174,816


9,122,996

Diluted weighted average shares outstanding

9,677,726


9,459,495


9,618,172


9,499,452









GAAP Net Income

$

934


$

1,045


$

1,424


$

1,775

Adjustments:








Share-based compensation

84


67


168


126

Amortization of purchased intangibles

269


118


433


261

Legal expenses for litigation relating to indemnification of former officers, theft of our intellectual property claims and our claim for damages

31


95


60


184

Acquisition related expenses

102


10


443


58

Total of adjustments before taxes

486


290


1,104


629

Income taxes affected by the above adjustments

54


95


331


199

      Total adjustments

432


195


773


430

Non-GAAP Net Income

$

1,366


$

1,240


$

2,197


$

2,205



CLEARONE, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EBITDA

(Dollars in thousands, except per share values)



Quarter ended June 30,


Six months ended June 30,


2014


2013


2014


2013

GAAP net income

$

934


$

1,045


$

1,424


$

1,775

Adjustments:








Provision for income taxes

259


498


611


822

Depreciation and amortization

464


323


784


646

Non-GAAP EBITDA

1,657


1,866


2,819


3,243

Share-based compensation

84


67


168


126

Legal expenses for litigation relating to indemnification of former officers, theft of our intellectual property claims and our claim for damages

31


95


60


184

Acquisition related expenses

102


10


443


58

Non-GAAP Adjusted EBITDA

$

1,874


$

2,038


$

3,490


$

3,611









Basic weighted average shares outstanding

9,266,071


9,093,461


9,174,816


9,122,996

Diluted weighted average shares outstanding

9,677,726


9,459,495


9,618,172


9,499,452









Basic Non-GAAP Adjusted EBITDA per common share

$

0.20


$

0.22


$

0.38


$

0.40

Diluted Non-GAAP Adjusted EBITDA per common share

$

0.19


$

0.22


$

0.36


$

0.38

 

SOURCE ClearOne

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…