- Full Year 2024 Operating Expenses decreased
9.8% vs prior year -
- Q4 Revenue and Q4 Gross Margin increased
18.1% and 44.8%, respectively, vs. prior quarter -
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, 2024.
“Throughout the fourth quarter, we maintained efforts to expand
and accelerate shipments of our award-winning communication
solutions, all while driving a leaner, more efficient cost
structure,” said Derek Graham, CEO of ClearOne. “We delivered
strong momentum in the fourth quarter of 2024 with revenue
increasing 18.1% sequentially compared to Q3 2024. Gross margins
also improved meaningfully, rising 44.8% from the prior quarter,
reflecting continued operational discipline. For the full year
2024, we reduced operating expenses by 9.8% year-over-year,
underscoring our commitment to cost optimization and financial
efficiency. We closed 2024 with a solid liquidity position, ending
the year with over $1.4 million in cash and cash equivalents, and
no secured debt.”
Our full-year top-line performance reflects slower order flow
compared to the previous year, which we believe stems from the
cumulative impact of past production shortages. We have also faced
sales headwinds from our products’ lack of Microsoft Teams
certification, despite their longtime functional compatibility with
this platform. Our work through early 2025 has focused on
mitigating these impacts through introduction of new products that
meet the needs of an evolving communication environment,
maintaining consistent dialogues, product demonstrations, and
feedback cycles with customers and distributors, and improving our
visibility at key industry events.
Operational Highlights
- Debuted DIALOG® 20 USB 2-Channel Wireless Microphone at ISE
2024, enabling users to enhance hybrid meetings with local sound
reinforcement and less than four milliseconds of audio latency. The
DIALOG® UVHF Microphone System also received AV Technology
Magazine’s Best in Show Award.
- Exhibited and demonstrated the Company’s complete portfolio of
audio conferencing, visual collaboration, BYOD collaboration,
professional microphones, network management and AV networking
solutions at ISE 2024, including the new DIALOG® 20 USB 2-Channel
Wireless Microphone, BMA 360D, Versa® USB22D Dante Adapter, DIALOG®
UVHF Microphone System, and Versa® UCS2100 Collaboration Switcher
Kit.
- Showcased the Company’s industry-leading line of collaboration
and conferencing solutions at the US InfoComm Expo 2024. During the
exhibit, the Company demonstrated a variety of solutions that
enhance BYOD collaboration, transforming any room into a
user-friendly BYOD space.
- Announced a special one-time cash dividend of $0.50 per share
of ClearOne common stock in March 2024, reflecting the Company’s
robust balance sheet and commitment to its shareholders.
“As we drive additional momentum for our audio and visual
communication solutions, we are also focused on improving our
products’ overall interoperability, ease of use, and global
presence. Our newest microphone solutions can be integrated with
DSPs from both our own product suite and those of separate
third-party manufacturers, offering greater flexibility for
customers and prospects. From an international standpoint, we are
seeking to expand our footprint in several key regions—such as the
Middle East and India—in which we have seen particular sales
strength and increased reception to our products. We are evaluating
further sales, marketing, and related investments in these
geographies to optimize our team for capitalizing on this
increasing demand.”
“Moving further into 2025, we are committed to optimizing our
cost structure driving product innovation, and solidifying ClearOne
as a preferred partner for current and prospective customers. In
conjunction with working to ramp shipments for the BMA 360D and
DIALOG® UVHF, we are focused on improving customer experiences
within our partner network to support additional customer growth
and retention. With a robust balance sheet and improving product
demand, we believe ClearOne is well-positioned to drive towards
future growth as we work to achieve profitability and expand our
market share.”
Financial Summary
The Company uses certain non-GAAP financial measures and
reconciles those to GAAP measures in the attached tables.
- Q4 2024 revenue was $3.0 million, compared to $4.2 million in
Q4 2023 and $2.5 million in Q3 2024. The year-over-year decrease
was driven by lower demand for the Company’s microphone products
and the cumulative impact of past product shortages. The sequential
improvement was primarily due to increased shipments of the
Company’s video products and wireless microphones.
- GAAP gross profit in Q4 2024 was $0.9 million, compared to $1.6
million in Q4 2023 and $0.6 million in Q3 2024. GAAP gross profit
margin was 30% in Q4 2024, compared to 38% in Q4 2023 and 24% in Q3
2024. Gross profit margin improved by approximately 6%
sequentially, due to improving margins in the wireless products and
decreased approximately 8% year-over-year from writing off some
aged inventory due to obsolescence.
- Operating expenses in Q4 2024 were $2.9 million, compared to
$3.3 million in Q4 2023 and $2.8 million in Q3 2024. Non-GAAP
operating expenses in Q4 2024 were $2.8 million compared to $2.7
million in Q3 2024 and $3.2 million in Q4 2023. The sequential
increase was due to increase in legal fees and accounting charges,
and the year-over-year decrease in non-GAAP operating expenses was
mainly due to the continued benefits of the cost-cutting measures
initiated in 2024.
- GAAP net loss in Q4 2024 was $(2.2) million, or $(0.09) per
share, compared to a net income of $2.6 million, or $0.11 per
share, in Q4 2023 and a net loss of $(2.1) million, or $(0.09) per
share, in Q3 2024. The sequential improvement in net income was
primarily due to the increase in revenue. The year-over-year
decline was largely due to the recognition of a gain of $4.0
million from a patent cross license agreement completed in Q4
2023.
- Non-GAAP net loss in Q4 2024 was $(2.1) million, or $(0.09) per
share, compared to a Non-GAAP net loss of $(1.2) million, or
$(0.05) per share, in Q4 2023 and a Non-GAAP net loss of $(2.0)
million, or $(0.08) per share, in Q3 2024. Net loss was flat
sequentially, while the year-over-year increase in net loss was
driven by a decrease in gross margin of $(1.2) million partially
offset by a decrease in operating expenses of $0.3 million.
($ in 000, except per share)
Three months ended December
31,
Year ended December
31,
2024
2023
Change in %
Favorable/(Adverse)
2024
2023
Change in %
Favorable/(Adverse)
GAAP
Revenue
$
2,956
$
4,154
(29
)
$
11,386
$
18,704
(39
)
Gross profit
886
1,578
(44
)
2,629
6,357
(59
)
Operating expenses
2,907
3,317
12
11,840
13,129
10
Operating loss
(2,021
)
(1,739
)
(16
)
(9,211
)
(6,772
)
(36
)
Net income (loss)
(2,203
)
2,642
(183
)
(8,983
)
(560
)
(1,504
)
Diluted income (loss) per share
(0.09
)
0.11
(182
)
(0.37
)
(0.02
)
(1,750
)
Non-GAAP
Non-GAAP operating expenses
2,831
3,162
10
11,489
12,511
8
Non-GAAP operating loss
(1,943
)
(1,581
)
(23
)
(8,853
)
(6,146
)
(44
)
Non-GAAP net income (loss)
(2,125
)
(1,200
)
(77
)
(8,625
)
(5,284
)
(63
)
Non-GAAP Adjusted EBITDA
(1,940
)
(680
)
(185
)
(8,244
)
(4,075
)
(102
)
Non-GAAP diluted income (loss) per
share
(0.09
)
(0.05
)
(80
)
(0.36
)
(0.22
)
(64
)
Balance Sheet Highlights
As of December 31, 2024, cash, cash equivalents and investments
were $1.4 million, as compared with $21.3 million as of December
31, 2023.
The Company’s 2023 year-end cash balance also reflects a $6.4
million income tax refund, which was reported as a receivable on
the balance sheet as of September 30, 2023. Subsequent to the
fourth quarter of 2023, the Company received an additional $4.0
million in cash related to a non-exclusive patent cross-licensing
agreement that was finalized and disclosed in December 2023.
About ClearOne
ClearOne is a global market leader enabling conferencing,
collaboration, and network streaming solutions. 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 Company’s annual report on Form 10-K for the year
ended December 31, 2024 (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-K and the Public Filings.
CLEARONE, INC
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par
value)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,417
$
17,835
Marketable securities
—
3,480
Legal settlement receivable
—
4,000
Receivables, net of allowance for doubtful
accounts of $405
2,208
3,279
Inventories, net
11,224
10,625
Income tax receivable
10
36
Prepaid expenses and other assets
3,894
4,062
Total current assets
18,753
43,317
Long-term marketable securities
—
916
Long-term inventories, net
4,920
3,143
Property and equipment, net
500
530
Operating lease - right of use assets,
net
750
990
Intangibles, net
1,539
1,689
Other assets
82
109
Total assets
$
26,544
$
50,694
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,804
$
1,945
Accrued liabilities
1,724
2,290
Deferred product revenue
17
30
Total current liabilities
3,545
4,265
Operating lease liability, net of
current
514
665
Other long-term liabilities
1,154
1,079
Total liabilities
5,213
6,009
Shareholders’ equity:
Common stock, par value $0.001, 50,000,000
shares authorized, 23,992,995 and 23,958,194 shares issued and
outstanding, respectively
24
24
Additional paid-in capital
31,672
46,047
Accumulated other comprehensive loss
(306
)
(310
)
Accumulated deficit
(10,059
)
(1,076
)
Total shareholders’ equity
21,331
44,685
Total liabilities and shareholders’
equity
$
26,544
$
50,694
CLEARONE, INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Dollars in thousands, except per
share amounts)
Year ended December
31,
2024
2023
Revenue
$
11,386
$
18,704
Cost of goods sold
8,757
12,347
Gross profit
2,629
6,357
Operating expenses:
Sales and marketing
4,565
4,897
Research and product development
3,299
3,671
General and administrative
3,976
4,561
Total operating expenses
11,840
13,129
Operating loss
(9,211
)
(6,772
)
Interest expense
228
(537
)
Other income, net
155
7,183
Income (loss) before income taxes
(8,828
)
(126
)
Provision for (benefit from) income
taxes
155
434
Net income (loss)
$
(8,983
)
$
(560
)
Basic income (loss) per common share
$
(0.37
)
$
(0.02
)
Diluted income (loss) per common share
$
(0.37
)
$
(0.02
)
Basic weighted average shares
outstanding
23,992,995
23,958,184
Diluted weighted average shares
outstanding
23,992,995
23,958,184
Comprehensive income (loss):
Net income (loss)
$
(8,983
)
$
(560
)
Other comprehensive income (loss):
Unrealized loss on available-for-sale
securities, net of tax
17
(15
)
Change in foreign currency translation
adjustment
(13
)
(7
)
Comprehensive income (loss)
$
(8,979
)
$
(582
)
CLEARONE, INC.
UNAUDITED RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except per
share values)
Three months ended December
31,
Year ended December
31,
2024
2023
2024
2023
GAAP operating loss
$
(2,021
)
$
(1,739
)
$
(9,211
)
$
(6,772
)
Stock-based compensation
27
29
98
109
Amortization of intangibles
51
129
260
517
Non-GAAP operating loss
$
(1,943
)
$
(1,581
)
$
(8,853
)
$
(6,146
)
GAAP net income (loss)
$
(2,203
)
$
2,642
$
(8,983
)
$
(560
)
Stock-based compensation
27
29
98
109
Amortization of intangibles
51
129
260
517
Other income adjustment
—
(4,000
)
—
(5,350
)
Non-GAAP net income (loss)
$
(2,125
)
$
(1,200
)
$
(8,625
)
$
(5,284
)
GAAP net income (loss)
$
(2,203
)
$
2,642
$
(8,983
)
$
(560
)
Number of shares used in computing GAAP
diluted income (loss) per share
23,969,148
23,960,776
23,992,995
23,958,184
GAAP diluted income (loss) per
share
$
(0.09
)
$
0.11
$
(0.37
)
$
(0.02
)
Non-GAAP net income (loss)
$
(2,125
)
$
(1,200
)
$
(8,625
)
$
(5,284
)
Number of shares used in computing
Non-GAAP diluted income (loss) per share
23,969,148
23,960,776
23,992,995
23,958,184
Non-GAAP diluted income (loss) per
share
$
(0.09
)
$
(0.05
)
$
(0.36
)
$
(0.22
)
GAAP net income (loss)
$
(2,203
)
$
2,642
$
(8,983
)
$
(560
)
Stock-based compensation
27
29
98
109
Interest expense
—
68
—
537
Depreciation
59
64
226
238
Amortization of intangibles
51
129
260
517
Other income adjustment
—
(4,000
)
—
(5,350
)
Provision for (benefit from) income
taxes
126
388
155
434
Non-GAAP Adjusted EBITDA
$
(1,940
)
$
(680
)
$
(8,244
)
$
(4,075
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250331996327/en/
Derek Graham 801-303-3425 investor_relations@clearone.com
http://investors.clearone.com
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