WJTV News Channel 12 - ClearOne Reports Record Fourth Quarter Revenue

ClearOne Reports Record Fourth Quarter Revenue

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SOURCE ClearOne

SALT LAKE CITY, Feb. 27, 2014 /PRNewswire/ --  

Fourth Quarter 2013 Highlights

  • Record revenue of $14.2 million.
  • Revenue increased by 9%.
  • Non-GAAP net income increased by 49%.

Full Year 2013 Highlights

  • Record revenue of $49.6 million.
  • Revenue increased by 7%
  • Non-GAAP net income increased by 44%.

Financial Summary

(Dollars in thousands, except per share values)


Fourth Quarter


Full Year



2013


2012


Change


2013


2012


Change

Revenue


$

14,230


$

13,036


9%


$

49,592


$

46,417


7%

Gross Profit


8,549


7,411


15%


29,857


27,328


9%

Non-GAAP Operating Income


2,881


2,290


26%


8,404


6,792


24%

Non-GAAP Net Income


1,821


1,225


49%


5,710


3,977


44%

Non-GAAP Adjusted EBITDA


3,157


2,856


11%


9,331


8,011


16%

Non-GAAP Diluted EPS


$

0.19


$

0.13


46%


$

0.60


$

0.43


40%














ClearOne (NASDAQ: CLRO), a global provider of audio and visual communication solutions, today reported financial results for the fourth quarter and the year ended December 31, 2013.  Results reflect continuing growth from a strategically-built portfolio of innovative and profitable products. 

For the 2013 fourth quarter, revenue increased by 9% to $14.2 million, compared with $13.0 million for the fourth quarter of 2012.  Gross profit for the quarter was $8.5 million, or 60% of revenue, compared with  $7.4 million, or 57% of revenue, for the fourth quarter of 2012. Non-GAAP operating income increased by 26% to $2.9 million from $2.3 million for the 2012 fourth quarter. Non-GAAP net income increased 49% to $1.8 million, or $0.19 per diluted share, from $1.2 million, or $0.13 per diluted share, for the fourth quarter of 2012. Non-GAAP adjusted EBITDA for the 2013 fourth quarter increased 11% to $3.2 million, or $0.34 per diluted share, from $2.9 million, or $0.31 per diluted share, a year ago.

For the year ended December 31, 2013, revenue increased 7% to $49.6 million from $46.4 million for the year ended December 31, 2012.  Gross profit was $29.9 million, or 60% of revenue, compared with $27.3 million, or 59% of revenue, for the year ended December 31, 2012.  Non-GAAP operating income for the year ended December 31, 2013 increased by 24% to $8.4 million from $6.8 million for the year ended December 31, 2012.  Non-GAAP net income for year ended December 31, 2013 increased 44% to $5.7 million, or $0.60 per diluted share, from $4.0 million, or $0.43 per diluted share, for the year ended December 31, 2012.  Non-GAAP adjusted EBITDA increased 17% to $9.3 million, or $0.99 per diluted share, from $8.0 million, or $0.87 per diluted share, for the year ended December 31, 2012.

Cash, cash equivalents and investments totaled $42.7 million at December 31, 2013, down from $55.5 million on December 31, 2012.  These balances include the final net amount retained from the December 2012, $45 million favorable settlement relating to auction-rate securities, after paying $13.8 million of associated income taxes and $6.75 million in attorneys' fees. The cash balance also includes $364,000, net of legal expenses received during the fourth quarter of 2013 as final settlement from escrow monies earlier deposited on account of our dispute with  a former officer of the company. 

ClearOne continued its stock repurchase plan in the fourth quarter, bringing the total repurchase amount to approximately $2.8 million against an allocation of $10 million.

"We are pleased to report record revenue for the last quarter of 2013 and our fourth consecutive year of revenue growth, combined with high margins and consistent profitability," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne.  "Strong demand, generated by our large and well-developed partner ecosystem in North America and EMEA, drove our revenue growth."

"The recently announced strategic acquisition of Spontania completes our exceptional portfolio of technologies needed for a strong video solutions model. As the market transitions to software and services, ClearOne is the only company to offer an entirely software-based and standards-based video conferencing product line that provides on-premise and cloud-based Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions," added Hakimoglu.  "We look forward to gaining significant market share and establishing ClearOne as a recognized leader in on-premise and cloud-based visual communication solutions in the rapidly growing desktop and mobile visual communications markets."

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 in the tables below 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 news 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.

http://investors.clearone.com

Contact:
Brent Johnson
Investor Relations
801-303-3577
brent.johnson@clearone.com

CLEARONE, INC.

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)



As of December 31, 2013


As of December 31, 2012

ASSETS




Current assets:




Cash and cash equivalents

$

17,192



$

55,509


Marketable securities

3,200



-


Receivables, net of allowance for doubtful accounts of $129 and $60, respectively

9,378



8,388


Inventories, net

10,758



9,584


Distributor channel inventories

1,520



1,289


Deferred income taxes

3,325



3,148


Prepaid expenses and other assets

2,693



1,369


Total current assets

48,066



79,287


Long-term marketable securities

22,326



-


Long-term inventories, net

551



1,955


Property and equipment, net

1,825



1,708


Intangibles, net

3,710



4,258


Goodwill

3,472



3,472


Deferred income taxes

1,024



1,195


Other assets

87



64


Total assets

$

81,061



$

91,939


LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

2,730



$

2,302


Accrued liabilities

1,761



2,143


Income taxes payable

-



14,782


Deferred product revenue

4,158



3,593


Total current liabilities

8,649



22,820


Deferred rent

286



422


Other long-term liabilities

1,791



2,029


Total liabilities

10,726



25,271


Shareholders' equity:




Common stock, par value $0.001, 50,000,000 shares authorized, 8,986,080 and 9,163,462 shares issued and outstanding

9



9


Additional paid-in capital

41,311



40,430


Accumulated other comprehensive income

23



-


Retained earnings

28,992



26,229


Total shareholders' equity

70,335



66,668


Total liabilities and shareholders' equity

$

81,061



$

91,939



CLEARONE, INC.

 

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in thousands, except per share values)



Quarter ended December 31,


Year ended December 31,


2013


2012


2013


2012

Revenue

$

14,230



$

13,036



$

49,592



$

46,417


Cost of goods sold

5,681



5,625



19,735



19,089


  Gross profit

8,549



7,411



29,857



27,328










Operating expenses:








Sales and marketing

2,321



1,903



8,896



8,112


Research and product development

2,065



2,265



7,562



8,261


General and administrative

1,777



2,374



6,416



6,934


Proceeds from litigation, net

(367)



(38,250)



(639)



(38,500)


  Total operating expenses

5,796



(31,708)



22,235



(15,193)










Operating income

2,753



39,119



7,622



42,521


Other income (expense), net

30



(7)



147



34


  Income before income taxes

2,783



39,112



7,769



42,555


Provision for income taxes

1,042



14,598



2,590



15,908


  Net income

$

1,741



$

24,514



$

5,179



$

26,647










Basic earnings per common share

$

0.19



$

2.69



$

0.57



$

2.93


Diluted earnings per common share

$

0.19



$

2.67



$

0.55



$

2.89










Basic weighted average shares outstanding

8,985,518



9,109,552



9,064,340



9,107,234


Diluted weighted average shares outstanding

9,340,741



9,192,714



9,455,518



9,214,685










Comprehensive income:








Net income

$

1,741



$

24,514



$

5,179



$

26,647


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

56



-



23



-


     Comprehensive income

$

1,797



$

24,514



$

5,202



$

26,647



CLEARONE, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(Dollars in thousands, except per share values)




Quarter ended December 31,


Year ended December 31,



2013


2012


2013


2012

Revenue


$

14,230



$

13,036



$

49,592



$

46,417


Cost of goods sold


5,678



5,622



19,726



19,083


Gross profit


8,552



7,414



29,866



27,334











Operating expenses:









Sales and marketing


2,302



1,890



8,822



8,054


Research and product development


2,052



2,254



7,511



8,224


General and administrative


1,317



980



5,129



4,264


Total operating expenses


5,671



5,124



21,462



20,542











Operating income


2,881



2,290



8,404



6,792


Other income (expense), net


30



(7)



147



34


Income before income taxes


2,911



2,283



8,551



6,826


Provision for income taxes


1,090



1,058



2,841



2,849


Non-GAAP Net income


$

1,821



$

1,225



$

5,710



$

3,977











Basic earnings per common share


$

0.20



$

0.13



$

0.63



$

0.44


Diluted earnings per common share


$

0.19



$

0.13



$

0.60



$

0.43











Basic weighted average shares outstanding


8,985,518



9,109,552



9,064,340



9,107,234


Diluted weighted average shares outstanding


9,340,741



9,192,714



9,455,518



9,214,685











GAAP Net Income


$

1,741



$

24,514



$

5,179



$

26,647


Adjustments:









Share-based compensation


91



65



296



241


Amortization of purchased intangibles


143



301



547



679


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


98



376



332



902


Acquisition related expenses


163



57



246



327


Proceeds from litigation


(367)



(37,628)



(639)



(37,878)


Total of adjustments before taxes


128



(36,829)



782



(35,729)


Income taxes affected by the above adjustments


48



(13,540)



251



(13,059)


      Total adjustments


80



(23,289)



531



(22,670)


Non-GAAP Net Income


$

1,821



$

1,225



$

5,710



$

3,977



CLEARONE, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EBITDA

(Dollars in thousands, except per share values)




Quarter ended December 31,


Year ended December 31,



2013


2012


2013


2012

GAAP net income


$

1,741



$

24,514



$

5,179



$

26,647


Adjustments:









Provision for income taxes


1,042



14,598



2,590



15,908


Depreciation and amortization


344



874



1,327



1,864


Non-GAAP EBITDA


3,127



39,986



9,096



44,419


Proceeds from litigation, net of legal expenses and special bonus to officers


(367)



(37,628)



(639)



(37,878)


Share-based compensation


91



65



296



241


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


98



376



332



902


Acquisition related expenses


163



57



246



327


Non-GAAP Adjusted EBITDA


$

3,112



$

2,856



$

9,331



$

8,011











Basic weighted average shares outstanding


8,985,518



9,109,552



9,064,340



9,107,234


Diluted weighted average shares outstanding


9,340,741



9,192,714



9,455,518



9,214,685











Basic Non-GAAP Adjusted EBITDA per common share


$

0.35



$

0.31



$

1.03



$

0.88


Diluted Non-GAAP Adjusted EBITDA per common share


$

0.34



$

0.31



$

0.99



$

0.87


©2012 PR Newswire. All Rights Reserved.

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