Revenues drop but profit steady for ClearOne’s nine months
ClearOne has reported its financial results for the three and nine months ended September 30, 2012.
For the 2012 third quarter, revenue was $11.6 million compared with $11.5 million for the third quarter of 2011. Gross profit was $6.7 million, or 58% of revenue, compared with $7.0 million, or 61% of revenue, for the third quarter of 2011. Operating income was $1.4 million and net income was $929,000, or $0.10 per diluted share. For the third quarter of 2011, which included a favorable judgment award of $3.7 million, operating income was $5.4 million and net income was $3.4 million, or $0.36 per diluted share. Non-GAAP net income, which excludes proceeds from litigation, share-based compensation and other non-operating items, rose to $1.3 million, or $0.14 per diluted share, from $1.2 million, or $0.13 per diluted share, for the third quarter of 2011. Non-GAAP Adjusted EBITDA was $2.1 million, or $0.23 per diluted share, for third quarters of both 2012 and 2011.
For the first nine months of 2012, revenue was $33.4 million compared with $34.1 million for the same period in 2011. Gross profit was $19.9 million, or 60% of revenue, compared with $20.4 million, or 60% of revenue, for the first nine months of 2011. Operating income was $3.2 million and net income was $2.0 million, or $0.21 per diluted share. For the first nine months of the prior year, which included the $3.7 judgment award, operating income was $8.4 million and net income was $5.5 million, or $0.59 per diluted share. Non-GAAP net income was $2.8 million, or $0.30 per diluted share, compared to $3.8 million, or $0.41 per diluted share, for the nine-month period of 2011. Non-GAAP Adjusted EBITDA was $5.2 million, or $0.56 per diluted share, compared with $6.6 million, or $0.71 per diluted share, for the first nine months of 2011.
The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.
“Revenue for the 2012 third quarter increased slightly over the same period last year, driven by increased sales in our EMEA region, offset by a decline in revenues from our Asia Pacific region,” said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. “During the quarter, we made solid progress strengthening our balance sheet as evidenced by our increased cash position and lower inventory levels.
“While the technology companies continue to be impacted by global economic headwinds, our business had performed better than many of our industry peers. Looking ahead, we plan to launch several new products over the next three months, which will provide positive momentum as we enter 2013.”
At September 30, 2012, the company had cash and cash equivalents of $14.3 million, up $3.9 million from June 30, 2012, and no debt.
Recent Highlights:
September 2012. The company launched an enhanced corporate website, which streamlines the user experience with new organization of the full breadth of ClearOne audio and video products and solutions.
October 2012. The company’s president, CEO and chairman, Zee Hakimoglu, received the 2012 InfoComm International Women in AV Award; created to raise awareness of the growing role of female professionals in the male-dominated field of audiovisual technology.
October 2012. The company established a distribution agreement with Ingram Micro Inc. under which Ingram Micro will distribute ClearOne’s new line of software-based video conferencing solutions and its USB, analog and VoIP conference phones to authorized technology resellers in the U.S.
October 2012. The company launched the MagicBox on-premise Entry-Level Server (ELS) to extend its web-based, digital signage offering. The ELS runs MagicBox WebSuite software applications for digital signage, including content creation and asset management inside a browser for a comprehensive content management experience – from design to verification.