SALT LAKE CITY, Nov. 24, 2020 /PRNewswire/ --
ClearOne (NASDAQ: CLRO), a global provider of audio and visual
communication solutions, reported financial results for the three
and nine month periods ended September 30, 2020.
"We achieved outstanding sequential and year-over-year revenue
growth thanks to our appealing video products and innovative BMA
based solutions. Our revenue growth amidst a global pandemic
demonstrates the resilience of our product portfolio. Our
wide-ranging suite of audio and video solutions are well suited for
traditional offices as well as the burgeoning work-from-home remote
offices," said Zee Hakimoglu, CEO and Chair
of ClearOne.
"Last month, we introduced the BMA 360, our new flagship
Beamforming Microphone Array in ceiling tile format. We believe
that it has set an audio performance standard that is unrivalled in
the industry and that is far superior to any other BMA solution in
the market. The BMA 360 is based on a dramatically new approach to
beamforming that provides a new beam topology to easily achieve
distortion-free, full 360-degree coverage of any room shape and any
seating arrangement using ClearOne Audio Intelligenceā¢. The
integrated features in the BMA 360 significantly reduce system
design complexity, simplify installation, consume less rack space,
and lower system cost," Hakimoglu added.
"On September 1, 2020, the U.S. District Court of the
Northern District of Illinois held that 'Shure has violated
the preliminary injunction order and is found in
contempt because it designed the MXA910-A in such a way that
allows it to be easily installed flush in most ceiling grids.' The
Court also opined that, '[t]he record is clear and convincing that
Shure-through its design choices-violated the injunction order by
allowing integrators to install the MXA910-A in the enjoined flush
configuration.' Ultimately, the Court ordered that 'Shure shall no
longer manufacture, market, or sell the MXA910-A ... .' Though
Shure has filed for appeal, this order of contempt is a
significant victory for ClearOne in our resolute effort
to hold Shure accountable for its action and to enforce our
hard-earned intellectual property rights. Our motion to accuse
Shure's MXA910-US of infringing the '806 Patent is still pending
with the Court," Hakimoglu concluded.
Financial Summary
The Company uses certain non-GAAP financial measures and
reconciles those to GAAP measures in the attached tables.
- Revenue in Q3 2020 was $8.4 million,
compared to $6.0 million in Q3 2019 and
million $6.4 in Q2 2020. The increase in year-over-year
as well as sequential revenues was mainly due to the increase in
revenue from video products, personal audio conferencing products
and beamforming microphone array products. Despite this
revenue growth in Q3 2020, revenue from our audio conferencing
products and microphones are far below the levels prior to
infringement of our patents.
- GAAP gross profit
in Q3 2020 was $3.5 million compared
to $2.5 million
in Q3 2019 and $2.6 million
in Q2 2020. GAAP gross profit margin was 41.8%
in Q3 2020, compared to 42.3%
in Q3 2019 and 41.2% in Q2 2020.
Gross profit margin remained fairly consistent through the compared
periods.
- Operating expenses
in Q3 2020 were $4.7 million, compared
to $4.6 million
in Q3 2019 and $4.5 million
in Q2 2020. Non-GAAP operating expenses
in Q3 2020 were $4.2 million, compared
to $4.2 million
in Q3 2019 and $4.0 million
in Q2 2020. The sequential increase in operating expenses
is mainly due to the increase in commissions paid to employees and
independent reps.
- GAAP net loss in Q3 2020 was $1.3 million,
or $0.07 per share, compared to net loss of $2.0
million, or $0.12 per share, in Q3 2019 and net loss
of $1.9 million, or $0.12 per share, in
Q2 2020. The sequential and year-over-year decline in GAAP net
loss was primarily due to increase in gross profit attributable to
increase in revenue.
($ in 000, except
per share)
|
|
Three months
ended
September 30,
|
|
|
|
Nine months
ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Change
|
|
|
|
2020
|
|
|
2019
|
|
Change
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
8,412
|
|
$
|
5,992
|
|
40
|
%
|
|
$
|
20,503
|
|
$
|
18,717
|
|
10
|
%
|
Gross
profit
|
|
3,520
|
|
|
2,537
|
|
39
|
%
|
|
|
8,976
|
|
|
8,180
|
|
10
|
%
|
Operating
expenses
|
|
4,680
|
|
|
4,635
|
|
1
|
%
|
|
|
13,726
|
|
|
14,773
|
|
-7
|
%
|
Operating
loss
|
|
(1,160)
|
|
|
(2,098)
|
|
-45
|
%
|
|
|
(4,750)
|
|
|
(6,593)
|
|
-28
|
%
|
Net loss
|
|
(1,260)
|
|
|
(1,976)
|
|
-36
|
%
|
|
|
(5,044)
|
|
|
(6,423)
|
|
-21
|
%
|
Diluted loss per
share
|
|
(0.07)
|
|
|
(0.12)
|
|
-38
|
%
|
|
|
(0.30)
|
|
|
(0.39)
|
|
-22
|
%
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
$
|
3,520
|
|
$
|
2,539
|
|
39
|
%
|
|
$
|
8,978
|
|
$
|
8,186
|
|
10
|
%
|
Non-GAAP operating
expenses
|
|
4,232
|
|
|
4,235
|
|
0
|
%
|
|
|
12,453
|
|
|
13,548
|
|
-8
|
%
|
Non-GAAP operating
loss
|
|
(712)
|
|
|
(1,696)
|
|
-58
|
%
|
|
|
(3,475)
|
|
|
(5,362)
|
|
-35
|
%
|
Non-GAAP net
loss
|
|
(812)
|
|
|
(1,574)
|
|
-48
|
%
|
|
|
(3,769)
|
|
|
(5,192)
|
|
-27
|
%
|
Non-GAAP Adjusted
EBITDA
|
|
(589)
|
|
|
(1,437)
|
|
59
|
%
|
|
|
(3,197)
|
|
|
(4,752)
|
|
33
|
%
|
Non-GAAP loss per
share (diluted)
|
|
(0.05)
|
|
|
(0.09)
|
|
-44
|
%
|
|
|
(0.22)
|
|
|
(0.31)
|
|
-28
|
%
|
Balance Sheet Highlights
At September 30, 2020, cash, cash equivalents and
investments were $8.6 million, as compared with the same
amount at December 31, 2019. The Company carries a debt
of $5.0 million on account of senior convertible notes
issued in December 2019 and a Paycheck Protection Program
(PPP) loan in April 2020. The Company intends to use the
entire PPP loan amount for qualifying expenses and to apply for
forgiveness of the PPP loan.
PDF Version
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 with 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, 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, 2019 (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.
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SOURCE ClearOne