ClearOne has reported its financial results for the three and six months ended June 30, 2012.
For the 2012 second quarter, revenue was $11.7 million compared with $11.9 million for the second quarter of 2011. Gross profit was $7.1 million, or 61% of revenue, compared with $7.2 million, or 60% of revenue, for the second quarter of 2011. Operating expenses increased to $6.0 million from $5.3 million in the prior year second quarter. Operating income declined to $1.1 million from $1.9 million for the second quarter of last year. Net income declined to $575,000, or $0.06 per diluted share, from $1.3 million, or $0.14 per diluted share, for the 2011 second quarter. Non-GAAP net income decreased to $905,000, or $0.10 per diluted share, from $1.7 million, or $0.18 per diluted share, for the second quarter of 2011. Non-GAAP Adjusted EBITDA decreased to $1.9 million, or $0.20 per diluted share, from $2.6 million, or $0.27 per diluted share, for the second quarter of 2011.
For the first half of 2012, revenue was $21.8 million compared with $22.6 million for the same period in 2011. Gross profit was $13.2 million, or 61% of revenue, compared with $13.5 million, or 60% of revenue, for the first half of 2011. Operating expenses, excluding litigation proceeds, increased to $11.6 million from $10.4 million in the first six months of the prior year. Operating income declined to $1.8 million from $3.1 million for the same period in the previous year. Net income declined to $1.0 million, or $0.11 per diluted share, from $2.1 million, or $0.23 per diluted share, for the 2011 first half. Non-GAAP net income decreased to $1.5 million, or $0.17 per diluted share, from $2.8 million, or $0.30 per diluted share, for the first half of 2011. Non-GAAP Adjusted EBITDA decreased to $3.1 million, or $0.33 per diluted share, from $4.5 million, or $0.48 per diluted share, for the first half of 2011.
At June 30, 2012, the Company had cash and cash equivalents of $10.4 million, and no debt after paying for the acquisition of VCON.
“Our financial performance for the 2012 second quarter met our expectations but did not match last year’s record-setting results, due to overall softness in all the markets in which we operate,” said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. “We continue to build and align our sales channel and internal sales organization for the new video solutions we are bringing to the market. The new products from our acquisition of VCON are in production and will be shipping under the ClearOne brand at the end of this month. The introduction of these new software-based video conferencing products complements our industry-leading enterprise audio, expands our total available market and we believe will make immediate contributions to ClearOne’s top-line.”