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SALT LAKE CITY--(BUSINESS WIRE)--Mar 31, 2023--
ClearOne (NASDAQ: CLRO), a global provider of audio and visual communication solutions, reported financial results for the three and twelve month periods ended December 31, 2022.
"The continued delays in the transition of our outsourced manufacturing from China to Singapore caused us to lose revenue on our core audio conferencing products. This combined with the decline in video products, especially our professional cameras, contributed to a 44% decline in revenues. The delay in the transition is expected to affect our 2023-Q1 revenues also. However, with our recent legal settlements which have provided us with over $56 million in cash (before paying taxes) and with our new products that are expected to increase our market share due to better interoperability features, we are confident that we will be able to weather these difficult times. We also take comfort in the fact that our unfilled backlog is continuing to increase as we strive to satisfy our customers’ demand," said Derek Graham, CEO of ClearOne.
Recent Highlights
Financial Summary
The Company uses certain non-GAAP financial measures and reconciles those to GAAP measures in the attached tables.
| ($ in 000, except per share) | Three months ended December 31, |
| Year ended December 31, | |||||||||||||||||||
| 2022 |
| 2021 |
| Change in % |
| 2022 |
| 2021 |
| Change in % | |||||||||||
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue | $ | 4,021 |
| $ | 7,202 |
| (44 | ) | $ | 25,205 |
| $ | 28,967 |
| (13 | ) | ||||||
Gross profit |
| 1,264 |
|
| 2,638 |
| 52 |
| 9,457 |
|
| 11,916 |
| (21 | ) | |||||||
Operating expenses |
| 3,854 |
|
| 5,114 |
| 25 |
| 16,679 |
|
| 19,411 |
| 14 | ||||||||
Operating loss |
| (2,590 | ) |
| (2,476 | ) | (5 | ) |
| (7,222 | ) |
| (7,495 | ) | 4 | |||||||
Net income (loss) |
| 24,028 |
| (2,284 | ) | 1,152 |
| 20,556 |
| (7,694 | ) | 367 |
| |||||||||
Diluted income (loss) per share |
| 0.97 |
| (0.10 | ) | 1,070 |
| 0.83 |
| (0.39 | ) | 313 |
| |||||||||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Non-GAAP operating expenses |
| 3,358 |
|
| 4,429 |
| 24 |
| 14,062 |
|
| 16,996 |
| 17 | ||||||||
Non-GAAP operating loss |
| (2,092 | ) |
| (1,788 | ) | (17 | ) |
| (4,597 | ) |
| (5,070 | ) | 9 | |||||||
Non-GAAP net income (loss) |
| (2,292 | ) |
| (1,596 | ) | (44 | ) |
| (5,165 | ) |
| (5,269 | ) | 2 | |||||||
Non-GAAP Adjusted EBITDA |
| (2,062 | ) |
| (1,678 | ) | (23 | ) |
| (4,383 | ) |
| (4,660 | ) | 6 | |||||||
Non-GAAP diluted loss per share |
| (0.09 | ) |
| (0.07 | ) | (29 | ) |
| (0.19 | ) |
| (0.27 | ) | 30 | |||||||
Balance Sheet Highlights
As of December 31, 2022, cash, cash equivalents and investments were $1.0 million, as compared with $4.1 million as of December 31, 2021. As of December 31, 2022, the Company carried an aggregate debt of $3.9 million on account of senior convertible notes issued in December 2019, and a short-term bridge loan obtained in Q4 2022. The Company’s cash position was strengthened by the receipts in excess of $56 million in the first quarter of 2023 pursuant to legal settlements. The Company also repaid the short-term bridge loan in January 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 | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars in thousands, except par value) | ||||||||
| December 31, | December 31, | ||||||
ASSETS |
|
|
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|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents | $ | 984 |
| $ | 1,071 |
| ||
Marketable securities |
| — |
|
| 1,790 |
| ||
Legal settlement receivable |
| 55,000 |
|
| — |
| ||
Receivables, net of allowance for doubtful accounts of $326 |
| 3,603 |
|
| 4,991 |
| ||
Inventories, net |
| 8,961 |
|
| 10,033 |
| ||
Income tax receivable |
| 1,071 |
|
| 7,535 |
| ||
Prepaid expenses and other assets |
| 7,808 |
|
| 4,021 |
| ||
Total current assets |
| 77,427 |
|
| 29,441 |
| ||
Long-term marketable securities |
| — |
|
| 1,220 |
| ||
Long-term inventories, net |
| 2,707 |
|
| 3,567 |
| ||
Property and equipment, net |
| 383 |
|
| 744 |
| ||
Operating lease - right of use assets, net |
| 1,047 |
|
| 1,537 |
| ||
Intangibles, net |
| 2,071 |
|
| 25,086 |
| ||
Other assets |
| 115 |
|
| 4,597 |
| ||
Total assets | $ | 83,750 |
| $ | 66,192 |
| ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
| ||
Accounts payable | $ | 1,284 |
| $ | 5,388 |
| ||
Accrued liabilities |
| 3,041 |
|
| 2,549 |
| ||
Deferred product revenue |
| 63 |
|
| 54 |
| ||
Short-term debt |
| 3,732 |
|
| 3,481 |
| ||
Total current liabilities |
| 8,120 |
|
| 11,472 |
| ||
Long-term debt |
| — |
|
| 1,535 |
| ||
Operating lease liability |
| 492 |
|
| 1,026 |
| ||
Other long-term liabilities |
| 1,008 |
|
| 655 |
| ||
Total liabilities |
| 9,620 |
|
| 14,688 |
| ||
|
|
|
|
|
|
| ||
Shareholders' equity: |
|
|
|
|
|
| ||
Common stock, par value $0.001, 50,000,000 shares authorized, 23,955,767 and 22,410,126 shares issued and outstanding |
| 24 |
|
| 22 |
| ||
Additional paid-in capital |
| 74,910 |
|
| 72,795 |
| ||
Accumulated other comprehensive loss |
| (288 | ) |
| (241 | ) | ||
Accumulated deficit |
| (516 | ) |
| (21,072 | ) | ||
Total shareholders' equity |
| 74,130 |
| 51,504 |
| |||
Total liabilities and shareholders' equity | $ | 83,750 | $ | 66,192 |
| |||
CLEARONE, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
(Dollars in thousands, except per share values) | ||||||||||||||||
|
|
|
|
| ||||||||||||
| Three months ended | Year ended | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue | $ | 4,021 |
| $ | 7,202 |
| $ | 25,205 |
| $ | 28,967 |
| ||||
Cost of goods sold |
| 2,757 |
|
| 4,564 |
|
| 15,748 |
|
| 17,051 |
| ||||
Gross profit |
| 1,264 |
|
| 2,638 |
|
| 9,457 |
|
| 11,916 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
| 1,244 |
|
| 1,716 |
|
| 5,517 |
|
| 6,736 |
| ||||
Research and product development |
| 984 |
|
| 1,541 |
|
| 4,390 |
|
| 5,794 |
| ||||
General and administrative |
| 1,626 |
|
| 1,857 |
|
| 6,772 |
|
| 6,881 |
| ||||
Total operating expenses |
| 3,854 |
|
| 5,114 |
|
| 16,679 |
|
| 19,411 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating loss |
| (2,590 | ) |
| (2,476 | ) |
| (7,222 | ) |
| (7,495 | ) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| (135 | ) |
| (145 | ) |
| (420 | ) |
| (514 | ) | ||||
Other income, net |
| 33,597 |
|
| 15 |
|
| 35,102 |
|
| 32 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income (loss) before income taxes |
| 30,872 |
| (2,606 | ) |
| 27,460 |
| (7,977 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Provision for (benefit from) income taxes |
| 6,844 |
| (322 | ) |
| 6,904 |
| (283 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) | $ | 24,028 | $ | (2,284 | ) | $ | 20,556 | $ | (7,694 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic weighted average shares outstanding |
| 23,952,590 |
|
| 22,403,408 |
|
| 23,937,962 |
|
| 19,859,817 |
| ||||
Diluted weighted average shares outstanding |
| 24,947,851 |
|
| 22,403,408 |
|
| 25,189,147 |
|
| 19,859,817 |
| ||||
|
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|
|
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| ||||
Basic income (loss) per share | $ | 1.00 | $ | (0.10 | ) | $ | 0.86 | $ | (0.39 | ) | ||||||
Diluted income (loss) per share | $ | 0.97 | $ | (0.10 | ) | $ | 0.83 | $ | (0.39 | ) | ||||||
|
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| ||||
Comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
| 24,028 |
| (2,284 | ) |
| 20,556 |
| (7,694 | ) | ||||||
Unrealized loss on available-for-sale securities, net of tax |
| — |
| (15 | ) |
| (2 | ) |
| (28 | ) | |||||
Change in foreign currency translation adjustment |
| (22 | ) |
| (1 | ) |
| (45 | ) |
| (27 | ) | ||||
Comprehensive income (loss) |
| 24,006 |
| (2,300 | ) |
| 20,509 |
| (7,749 | ) | ||||||
CLEARONE, INC. | ||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||||||
(Dollars in thousands, except per share values) | ||||||||||||||||
|
|
|
|
|
|
| ||||||||||
|
| Three months ended |
| Year ended | ||||||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
GAAP operating loss | $ | (2,590 | ) | $ | (2,476 | ) | $ | 7,222 | $ | (7,495 | ) | |||||
Stock-based compensation |
| 24 |
|
| 37 |
|
| 113 |
|
| 137 |
| ||||
Amortization of intangibles |
| 474 |
|
| 651 |
|
| 2,512 |
|
| 2,288 |
| ||||
Non-GAAP operating loss | $ | (2,092 | ) | $ | (1,788 | ) | $ | (4,597 | ) | $ | (5,070 | ) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
GAAP net income (loss) | $ | 24,028 | $ | (2,284 | ) | $ | 20,556 | $ | (7,694 | ) | ||||||
Stock-based compensation |
| 24 |
|
| 37 |
|
| 113 |
|
| 137 |
| ||||
Amortization of intangibles |
| 474 |
|
| 651 |
|
| 2,512 |
|
| 2,288 |
| ||||
Other income adjustment |
| (33,623 | ) |
| — |
|
| (35,151 | ) |
| — |
| ||||
Tax effect |
| 6,805 |
|
| — |
|
| 6,805 |
|
| — |
| ||||
Non-GAAP net income (loss) | $ | (2,292 | ) | $ | (1,596 | ) | $ | (5,165 | ) | $ | (5,269 | ) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
GAAP net income (loss) | $ | 24,028 | $ | (2,284 | ) | $ | 20,556 | $ | (7,694 | ) | ||||||
Number of shares used in computing GAAP diluted income (loss) per share |
| 24,947,851 |
|
| 22,403,408 |
|
| 25,189,147 |
|
| 19,859,817 |
| ||||
GAAP diluted income (loss) per share | $ | 0.97 | $ | (0.10 | ) | $ | 0.83 | $ | (0.39 | ) | ||||||
Non-GAAP net income (loss) | $ | (2,292 | ) | $ | (1,596 | ) | $ | (5,165 | ) | $ | (5,269 | ) | ||||
Number of shares used in computing Non-GAAP diluted income (loss) per share |
| 24,947,851 |
|
| 22,403,408 |
|
| 25,189,147 |
|
| 19,859,817 |
| ||||
Non-GAAP diluted income (loss) per share | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.19 | ) | $ | (0.27 | ) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
GAAP net income (loss) | $ | 24,028 | $ | (2,284 | ) | $ | 20,556 | $ | (7,694 | ) | ||||||
Stock-based compensation |
| 24 |
|
| 37 |
|
| 113 |
|
| 137 |
| ||||
Interest expense |
| 135 |
|
| 145 |
|
| 420 |
|
| 514 |
| ||||
Depreciation |
| 56 |
|
| 95 |
|
| 263 |
|
| 378 |
| ||||
Amortization of intangibles |
| 474 |
|
| 651 |
|
| 2,512 |
|
| 2,288 |
| ||||
Other income adjustment |
| (33,623 | ) |
| — |
|
| (35,151 | ) |
| — |
| ||||
Provision for (benefit from) income taxes |
| 6,844 |
| (322 | ) |
| 6,904 |
| (283 | ) | ||||||
Non-GAAP Adjusted EBITDA | $ | (2,062 | ) | $ | (1,678 | ) | $ | (4,383 | ) | $ | (4,660 | ) |
View source version on businesswire.com:https://www.businesswire.com/news/home/20230331005495/en/
CONTACT: Narsi Narayanan
385-426-0565
investor_relations@clearone.com
http://investors.clearone.com
KEYWORD: UTAH UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: TECHNOLOGY OFFICE PRODUCTS PHOTOGRAPHY SOFTWARE AUDIO/VIDEO INTERNET HARDWARE RETAIL CONSUMER ELECTRONICS VOIP
SOURCE: ClearOne, Inc.
Copyright Business Wire 2023.
PUB: 03/31/2023 10:25 PM/DISC: 03/31/2023 10:25 PM
http://www.businesswire.com/news/home/20230331005495/en