ClearOne Reports Fiscal 2009 Third Quarter Results
For the fiscal 2009 third quarter, revenue decreased to
During the third fiscal quarter of 2009 and in accordance with generally accepted accounting principles, the company reversed the approximate
Under a modified Dutch auction tender offer completed in
"Our topline financial results reflect the global decline in technology spending, as well as increased pricing pressure on certain products," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "While we currently are seeing signs of improvement, we have and continue to take steps to reduce costs throughout the organization."
Commenting on the company's current inventory levels, Hakimoglu said the company built up its inventory levels to mitigate supply chain risk, particularly in light of the economic downturn and its current transition to a larger, more global and capable electronic manufacturing services provider for certain products, and supply its new Asia Pacific Support Center in
Hakimoglu added that the company's Asia Pacific Support Center, which has commenced fulfillment, will better serve the majority of ClearOne's international partners and enhance profitability due to the favorable
For the first nine months of fiscal 2009, revenue was
At
About ClearOne
ClearOne is a communications solutions company that develops and sells audio conferencing systems and other related products for audio, video, and web conferencing applications. The reliability, flexibility, and performance of ClearOne's comprehensive solutions create a natural communications environment, which saves organizations time and money by enabling more effective and efficient communication. For more information, visit ClearOne's website 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 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 forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
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Contact: ClearOne Communications, Inc.
Investor Relations
(801) 303-3555
FINANCIAL TABLES FOLLOW
CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(unaudited) (audited)
March 31, June 30,
2009 2008
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ASSETS
Current assets:
Cash and cash equivalents $10,908 $3,327
Marketable securities 830 5,922
Accounts receivable, net of allowance for
doubtful accounts of $72 and $87,
respectively 5,486 7,238
Deposit, bond for preliminary injunction 0 908
Note receivable 5 43
Inventories, net 14,046 7,799
Income tax receivable 1,015 0
Deferred income taxes 2,606 2,828
Prepaid expenses 716 820
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Total current assets 35,612 28,885
Long-term marketable securities 0 11,168
Property and equipment, net 2,634 2,554
Intangible assets, net 39 47
Long-term deferred tax asset 1,067 1,639
Other assets 21 7
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Total assets $39,373 $44,300
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,741 $2,187
Accrued taxes 0 72
Accrued liabilities 1,946 3,600
Deferred product revenue 4,163 4,547
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Total current liabilities 8,850 10,406
Deferred rent 583 700
Other long-term liabilities 1,187 1,054
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Total liabilities 10,620 12,160
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Shareholders' equity:
Common stock, par value $0.001, 50,000,000
shares authorized, 8,928,387 and 10,228,902
shares issued and outstanding, respectively 9 10
Additional paid-in capital 38,469 44,618
Accumulated other comprehensive income
(loss) (8) (694)
Accumulated deficit (9,717) (11,794)
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Total shareholders' equity 28,753 32,140
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Total liabilities and shareholders'
equity $39,373 $44,300
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CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of dollars, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2009 2008 2009 2008
----- ------ ------ ------
Revenue $7,612 $9,163 $27,840 $29,393
Cost of goods sold 3,605 3,439 11,399 12,153
----- ------ ------ ------
Gross profit 4,007 5,724 16,441 17,240
----- ------ ------ ------
Operating expenses:
Sales & Marketing 1,690 1,640 5,600 4,820
Research and product
development 1,810 1,701 5,430 5,134
General and
administrative 123 1,183 2,451 5,276
----- ------ ------ ------
Total operating
expenses 3,623 4,524 13,481 15,230
----- ------ ------ ------
Operating income 384 1,200 2,960 2,010
----- ------ ------ ------
Total other income,
net 60 196 221 848
----- ------ ------ ------
Income from continuing
operations before income
taxes 444 1,396 3,181 2,858
(Provision) for income
taxes (105) (335) (1,104) (955)
----- ------ ------ ------
Income from continuing
operations 339 1,061 2,077 1,903
----- ------ ------ ------
Income from
discontinued
operations, net of
tax of $0 and $9 0 0 0 16
----- ------ ------ ------
Net income $339 $1,061 $2,077 $1,919
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SOURCE ClearOne Communications, Inc.