- Improved Production Output Drives Significant
Reductions in Backlog -
- Sequential and Year-over-Year OpEx Reductions
Reflect Continued Benefits of Cost Optimization Initiatives -
ClearOne (NASDAQ: CLRO), a global provider of audio and visual
communication solutions, reported financial results for the
three-month period ended September 30, 2023.
“In the third quarter, we continued ramping shipments for our
leading communication solutions and operating from a leaner expense
structure,” said Derek Graham, CEO of ClearOne. “We began shipping
our Dante®-enabled BMA 360D microphone array ceiling tile to
positive early reception, and we drove significant reductions in
our overall backlog as a result of increased production output from
our contract manufacturer. In fact, our production levels are now
in line with the volumes we generated prior to our manufacturing
transition from China to Singapore, which we expect to complete by
the end of Q4. Our most popular products are now in stock and ready
to ship. We believe the flow of sales orders at the end of Q3
slowed down considerably due to the cumulative impact of past
product shortages. As we further improve manufacturing output and
lead times, we believe customer ordering patterns will
normalize.
“Alongside our increased production, we also made steady
progress with our cost optimization efforts, reducing operating
expenses 3% sequentially and 16% year-over-year. With approximately
$20.0 million in cash and investments at the end of September 2023
and a more efficient operating model, we believe we are on track to
deliver top-line improvements in the fourth quarter and
beyond.”
Operational Highlights
- Debuted new Versa USB22D Dante Adapter at InfoComm India 2023,
enabling users to seamlessly connect computers to a Dante network
and use any audio application for playback or capture without
installing software.
- DIALOG® UVHF Wireless Microphone System was named a winner of
the 2023 AV Technology magazine Pro AV Best in Market award program
and the 2023 Tech & Learning Magazine Awards of Excellence,
highlighting the system’s innovative audio performance and
adaptability.
- Expanded the Company’s comprehensive portfolio of commercial
and residential solutions to the D-Tools software platform for
integrators. The D-Tools product library now features detailed
information on ClearOne’s full line of communications,
conferencing, and collaboration solutions and related accessory
parts.
- Showcased a complete suite of collaboration, conferencing, and
communication products and programs at CEDIA 2023. The display
included the Versa® Mediabar™ video soundbar, the recently launched
CHAT® 150 BT Speakerphone, UNITE® 60 4K ePTZ Wide-Angle Tracking
Camera, COLLABORATE® Versa® Pro CT, COLLABORATE® Versa® Lite CT,
and COLLABORATE® Versa® 60.
Graham continued: “Through and beyond the third quarter, we have
continued launching new products and expanding the reach of our
portfolio. In late October, we debuted our Versa® USB22D Dante®
Adapter at InfoComm India 2023. This new product offers classrooms,
businesses of all sizes, and residential customers seamless access
to a Dante® network on any computer.
“Additionally, our DIALOG® UVHF Wireless Microphone System—which
was just launched in June of this year—was recognized as a winner
at both the 2023 Tech & Learning Magazine Awards of Excellence
and 2023 AV Technology Pro AV Best in Market awards. Receiving this
industry recognition for one of our newest products reinforces our
position as an industry leader in producing innovative
communication solutions for all types of use cases. We also expect
to commence shipments of the DIALOG® UVHF during the fourth
quarter, with greater revenue contributions expected from the
product in the first quarter of 2024.
“Moving into the fourth quarter, we are working to complete our
manufacturing transition and drive greater market demand for
ClearOne’s audio solutions. We are focused on generating
sustainable revenue growth by ramping shipments of our BMA 360D and
DIALOG® UVHF, as well as rolling out our remaining new product
launches. With our expanding product library and optimized cost and
capital structure, we aim to build upon the foundation we’ve laid
to drive ongoing product innovation and expand our share of the AV
market.”
Financial Summary
The Company uses certain non-GAAP financial measures and
reconciles those to GAAP measures in the attached tables.
- Q3 2023 revenue was $4.9 million, compared to $6.3 million in
Q3 2022 and $5.5 million in Q2 2023. The 11% sequential decrease
was driven by reduced demand all product categories except our
cameras. We believe the flow of sales orders at the end of Q3 2023
slowed down considerably due to the cumulative impact of past
product shortages. The year-over-year decrease was mainly due to
sustained inventory sourcing and order fulfillment challenges for
the Company’s core audio conferencing and beamforming microphone
arrays as a result of delays in the transition of outsourced
manufacturing from China to Singapore.
- GAAP gross profit in Q3 2023 was $1.6 million, compared to $2.6
million in Q3 2022 and $1.8 million in Q2 2023. GAAP gross profit
margin was 33% in Q3 2023, compared to 34% in Q2 2023 and 41% in Q3
2022. Gross profit margin improved by approximately 100 basis
points sequentially due to reduced inventory obsolescence costs.
Gross profit margin decreased year-over-year due to increased
administration and overhead costs as a percentage of revenue and
change in the revenue mix of the products.
- Operating expenses in Q3 2023 improved to $3.1 million,
compared to $3.7 million in Q3 2022 and $3.2 million in Q2 2023.
Non-GAAP operating expenses in Q3 2023 improved to $2.9 million
compared to $3.1 million in Q2 2023 and $3.0 million in Q3 2022.
The sequential and year-over-year decrease in non-GAAP operating
expenses was mainly due to the continued benefits of the
cost-cutting measures initiated in 2022.
- GAAP net loss in Q3 2023 was $(1.4) million, or $(0.06) per
share, compared to a net loss of $(1.2) million, or $(0.05) per
share, in Q3 2022 and a net loss of $(1.0) million, or $(0.04) per
share, in Q2 2023. The sequential and year-over-year increase in
net loss was primarily due to the aforementioned decrease in
revenue and gross profit, partially offset by a decrease in
operating expenses and increase in interest income.
- Non-GAAP net loss in Q3 2023 was $(1.2) million, or $(0.05) per
share, compared to a Non-GAAP net loss of $(0.5) million, or
$(0.02) per share, in Q3 2022 and a Non-GAAP net loss of $(0.9)
million, or $(0.04) per share, in Q2 2023. The sequential and
year-over-year increase in net losses were driven by the
aforementioned decrease in revenue and gross profit partially
offset by a decrease in operating expenses and increase in interest
income.
($ in 000, except per share)
Three months ended September
30,
Nine months ended September
30,
2023
2022
Change in % Favorable/
(Adverse)
2023
2022
Change in % Favorable/
(Adverse)
GAAP
Revenue
$
4,889
$
6,264
(22
)
$
14,550
$
21,184
(31
)
Gross profit
1,616
2,570
(37
)
4,779
8,193
(42
)
Operating expenses
3,105
3,700
16
9,812
12,825
23
Operating loss
(1,489
)
(1,130
)
(32
)
(5,033
)
(4,632
)
(9
)
Net loss
(1,351
)
(1,248
)
(8
)
(3,202
)
(3,472
)
8
Diluted loss per share
(0.06
)
(0.05
)
(20
)
(0.13
)
(0.15
)
13
Non-GAAP
Non-GAAP operating expenses
$
2,933
$
2,992
2
$
9,349
$
10,704
13
Non-GAAP operating loss
(1,315
)
(420
)
(213
)
(4,565
)
(2,505
)
(82
)
Non-GAAP net loss
(1,177
)
(538
)
(119
)
(4,084
)
(2,873
)
(42
)
Non-GAAP Adjusted EBITDA
(1,006
)
(360
)
(179
)
(3,395
)
(2,321
)
(46
)
Non-GAAP diluted loss per share
(0.05
)
(0.02
)
(150
)
(0.17
)
(0.12
)
(42
)
Balance Sheet Highlights
As of September 30, 2023, cash, cash equivalents and investments
were $20.0 million, as compared with $1.0 million as of December
31, 2022. As of September 30, 2023, the Company carried an
aggregate debt of $1.2 million on account of senior convertible
notes issued in December 2019.
Nasdaq Minimum Bid Price Requirement
On August 1, 2023, ClearOne received a letter from the Listing
Qualifications Department of the Nasdaq Stock Market informing the
Company that because the closing bid price for its common stock was
below $1.00 for 30 consecutive trading days, the Company is not in
compliance with the minimum bid price requirement for continued
listing on the Nasdaq Capital Market, as set forth in Nasdaq
Marketplace Rule 5550(a)(2) (the “Minimum Bid Price
Requirement”).
In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the
Company has a period of 180 calendar days from August 1, 2023, or
until January 29, 2024, to regain compliance with the Minimum Bid
Price Requirement. If at any time before January 29, 2024, the
closing bid price of the Company’s common stock closes at or above
$1.00 per share for a minimum of 10 consecutive trading days (which
number days may be extended by Nasdaq), Nasdaq will provide written
notification that the Company has achieved compliance with the
Minimum Bid Price Requirement, and the matter would be
resolved.
ClearOne intends to continue actively monitoring the closing bid
price for its common stock between now and January 29, 2024, and
the Company will consider available options to resolve the
deficiency and regain compliance with the Minimum Bid Price
Requirement. Further details can be found in ClearOne’s related
Form 8-K filed on August 3, 2023 and in the Company’s Form 10-Q for
the three and six months ended June 30, 2023.
About ClearOne
ClearOne is a global company that designs, develops, and sells
conferencing, collaboration, and network streaming solutions for
voice and visual communications. The performance and simplicity of
its advanced comprehensive solutions offer unprecedented levels of
functionality, reliability, and scalability. Visit ClearOne at
www.clearone.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented on
a GAAP basis, ClearOne uses non-GAAP measures of gross profit,
operating income (loss), net income (loss), adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA) and
net income (loss) per share, which are adjusted to exclude certain
costs, expenses, gains and losses we believe appropriate to enhance
an overall understanding of our past financial performance from
period to period and also our prospects for the future. These
adjustments to our current period GAAP results are made with the
intent of providing both management and investors a more complete
understanding of ClearOne’s underlying operational results and
trends and our marketplace performance. The non-GAAP results are an
indication of our baseline performance before certain gains,
losses, or other charges that are considered by management to be
outside of our core operating results. In addition, these adjusted
non-GAAP results are among the primary indicators management uses
as a basis for our planning and forecasting of future periods. The
presentation of this additional non-GAAP financial information is
not meant to be considered in isolation or as a substitute for
gross profit, operating income (loss), net income (loss), income
(loss) per share 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
financial measures to the most directly comparable GAAP financial
measures is included in this release below.
Forward Looking Statements
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 and any
statements of the plans and objectives of management for future
operations and forecasts of future growth and value and the
possible outcomes of litigation, 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. The information in this press release
should be read in conjunction with and is modified in its entirety
by, the Annual Report on Form 10-K (the “10-K”) filed by the
Company for the same period with the Securities and Exchange
Commission (the “SEC”) and all of the Company’s other public
filings with the SEC (the “Public Filings”).
In particular, the financial information contained herein is
subject to and qualified by reference to the financial statements
contained in the 10-Q, including the footnotes thereto, as well as
the Company’s annual report on Form 10-K for the year ended
December 31, 2022 (the “10-K”), the footnotes thereto and the
limitations set forth therein. Investors may not rely on the press
release without reference to the 10-Q, the 10-K, and the Public
Filings.
CLEARONE, INC
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par
value)
September 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
13,694
$
984
Current marketable securities
5,698
—
Legal settlement receivable
—
55,000
Receivables, net of allowance of $326
3,874
3,603
Inventories, net
8,664
8,961
Income tax receivable
6,381
1,071
Prepaid expenses and other assets
3,776
7,808
Total current assets
42,087
77,427
Long-term marketable securities
583
—
Long-term inventories, net
2,870
2,707
Property and equipment, net
590
383
Operating lease - right of use assets,
net
1,081
1,047
Intangibles, net
1,794
2,071
Other assets
112
115
Total assets
$
49,117
$
83,750
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
1,759
$
1,284
Accrued liabilities
2,340
3,041
Deferred product revenue
38
63
Short-term debt
1,204
3,732
Total current liabilities
5,341
8,120
Operating lease liability, net of
current
755
492
Other long-term liabilities
1,008
1,008
Total liabilities
7,104
9,620
Shareholders' equity:
Common stock, par value $0.001, 50,000,000
shares authorized, 23,960,684 and 23,955,767 shares issued and
outstanding, respectively
24
24
Additional paid-in capital
46,015
74,910
Accumulated other comprehensive loss
(308
)
(288
)
Accumulated deficit
(3,718
)
(516
)
Total shareholders' equity
42,013
74,130
Total liabilities and shareholders'
equity
$
49,117
$
83,750
CLEARONE, INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(Dollars in thousands, except per
share amounts)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Revenue
$
4,889
$
6,264
$
14,550
$
21,184
Cost of goods sold
3,273
3,694
9,771
12,991
Gross profit
1,616
2,570
4,779
8,193
Operating expenses:
Sales and marketing
1,119
1,151
3,634
4,273
Research and product development
889
876
2,805
3,406
General and administrative
1,097
1,673
3,373
5,146
Total operating expenses
3,105
3,700
9,812
12,825
Operating loss
(1,489
)
(1,130
)
(5,033
)
(4,632
)
Interest expense
(86
)
(90
)
(469)
(285
)
Other income, net
243
(3
)
2,346
1,505
Loss before income taxes
(1,332
)
(1,223
)
(3,156
)
(3,412
)
Provision for income taxes
19
25
46
60
Net loss
$
(1,351
)
$
(1,248
)
$
(3,202
)
$
(3,472
)
Basic weighted average shares
outstanding
23,960,313
23,952,555
23,957,311
23,933,033
Diluted weighted average shares
outstanding
23,960,313
23,952,555
23,957,311
23,933,033
Basic loss per share
$
(0.06
)
$
(0.05
)
$
(0.13
)
$
(0.15
)
Diluted loss per share
$
(0.06
)
$
(0.05
)
$
(0.13
)
$
(0.15
)
Comprehensive loss:
Net loss
$
(1,351
)
$
(1,248
)
$
(3,202
)
$
(3,472
)
Unrealized loss on available-for-sale
securities, net of tax
(31
)
—
(17
)
(2
)
Change in foreign currency translation
adjustment
(7
)
(22
)
(3
)
(45
)
Comprehensive loss
$
(1,389
)
$
(1,270
)
$
(3,222
)
$
(3,519
)
CLEARONE, INC.
UNAUDITED RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except per
share values)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
GAAP operating loss
$
(1,489
)
$
(1,130
)
$
(5,033
)
$
(4,632
)
Stock-based compensation
33
24
80
89
Amortization of intangibles
141
686
388
2,038
Non-GAAP operating loss
$
(1,315
)
$
(420
)
$
(4,565
)
$
(2,505
)
GAAP net loss
$
(1,351
)
$
(1,248
)
$
(3,202
)
$
(3,472
)
Stock-based compensation
33
24
80
89
Amortization of intangibles
141
686
388
2,038
Other income adjustment
—
—
(1,350
)
—
CARES Act PPP loan forgiveness
—
—
—
(1,528
)
Non-GAAP net loss
$
(1,177
)
$
(538
)
$
(4,084
)
$
(2,873
)
GAAP net loss
$
(1,351
)
$
(1,248
)
$
(3,202
)
$
(3,472
)
Number of shares used in computing GAAP
diluted loss per share
23,960,313
23,952,555
23,957,311
23,933,033
GAAP diluted loss per share
$
(0.06
)
$
(0.05
)
$
(0.13
)
$
(0.15
)
Non-GAAP net loss
$
(1,177
)
$
(538
)
$
(4,084
)
$
(2,873
)
Number of shares used in computing
Non-GAAP diluted loss per share
23,960,313
23,952,555
23,957,311
23,933,033
Non-GAAP diluted loss per share
$
(0.05
)
$
(0.02
)
$
(0.17
)
$
(0.12
)
GAAP net loss
$
(1,351
)
$
(1,248
)
$
(3,202
)
$
(3,472
)
Stock-based compensation
33
24
80
89
Interest expense
86
90
469
285
Depreciation
66
63
174
207
Amortization of intangibles
141
686
388
2,038
Other income adjustment
—
—
(1,350
)
—
CARES Act PPP loan forgiveness
—
—
—
(1,528
)
Provision for (benefit from) income
taxes
19
25
46
60
Non-GAAP Adjusted EBITDA
$
(1,006
)
$
(360
)
$
(3,395
)
$
(2,321
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109998946/en/
Narsi Narayanan 385-426-0565 investor_relations@clearone.com
http://investors.clearone.com Investor Relations Contact Matt
Glover or Jackie Keshner Gateway Group, Inc. 949-574-3860
CLRO@gateway-grp.com
ClearOne (NASDAQ:CLRO)
Gráfico Histórico do Ativo
De Mar 2025 até Abr 2025
ClearOne (NASDAQ:CLRO)
Gráfico Histórico do Ativo
De Abr 2024 até Abr 2025
