ClearOne Reports 2013 First Quarter Financial Results

SALT LAKE CITY, May 1, 2013 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported its financial results for the first quarter ended March 31, 2013.

For the 2013 first quarter, revenue for the first time in the first quarter surpassed $11 million, totaling $11.3 million compared with  $10.2 million for the first quarter of 2012, an increase of 11%.  Gross profit was $7.0 million, or 62% of revenue, compared with  $6.1 million, or 60% of revenue, for the first quarter of 2012. Non-GAAP operating income increased by 48% to $1.4 million compared with $953 thousand during the first quarter of 2012. Non-GAAP net income grew 54% to $966 thousand, or $0.10 per diluted share, from $626 thousand, or $0.07 per diluted share. Non-GAAP Adjusted EBITDA increased 34% to $1.6 million, or $0.17 per diluted share compared with $1.2 million, or $0.13 per diluted share in the first quarter of 2012.

The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.

At March 31, 2013, the company had cash and cash equivalents of $42.6 million, down from $55.5 million on December 31, 2012. The cash position at the end of the quarter reflects 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.

"We are pleased that the results, which include record revenues for the seasonally slower first quarter, reflect meaningful contributions from our recent strategic acquisitions of video technology. Newly introduced professional audio products also significantly contributed to this record revenue," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. "Share of video products in our revenue mix has grown significantly, reflecting its increasing importance to our future growth. We continue to evaluate various measures to increase shareholder value, including internal investments in technology, operations, sales and marketing, modest strategic acquisitions, and other alternatives to benefit the company and all shareholders."

The first quarter results do not consider the expected receipt of approximately $500,000 in attorneys' fees previously paid to indemnify the company's former CFO, as the Utah Supreme Court's favorable ruling was received in April 2013, after the conclusion of the company's first quarter.

Recent highlights

• February 2013. The company introduced its new line of software-based video conferencing solutions to its established Professional AV channel distributors, which is expected to generate additional revenue in the remainder of 2013.
• February 2013. The company announced the promotion of David Traeger to Vice President, Professional Audio Visual Sales throughout North America and Latin America. Traeger will be responsible for developing and growing sales of ClearOne's full line of products, including the COLLABORATE^® suite of software-based video conferencing solutions, in the Professional AV channel.
• March 2013. The company announced the shipment of its Beamforming Microphone Array to complement its professionally installed audio conferencing product lines. The Beamforming Microphone Array is the industry's first professional-grade microphone array with patent-pending audio beamforming with adaptive steering and next generation AEC technology. This unique product differentiates ClearOne in the market and is expected to drive higher adoption of ClearOne's CONVERGE^® line of professional audio products.
• March 2013. The company announced the shipment of its new WS800 Digital Wireless Microphone System to complement its professionally installed audio conferencing product lines. The microphone system uses radio-frequency digital wireless signal transmission technology with highly secure encryption and is optimized to work with CONVERGE^®  Pro and INTERACT^® Pro products. The introduction of this wireless microphone system provides partners with a more complete ClearOne branded solution set and further extends ClearOne's reach in the large Pro AV microphone market.

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 audio and visual communications.  The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, scalability and reliability.  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
[email protected]

SOURCE ClearOne

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