SALT LAKE CITY, May 10, 2012 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported its financial results for the 2012 first quarter ended March 31, 2012.
For the 2012 first quarter, revenue was $10.2 million compared with $10.7 million for the first quarter of 2011. Gross profit was $6.1 million, or 60% of revenue, compared with $6.3 million, or 59% of revenue, for the first quarter of 2011. Operating expenses, excluding litigation proceeds, increased to $5.6 million from $5.1 million in the prior year first quarter. Operating income declined to $711,000 from $1.2 million for the first quarter last year. Net income declined to $453,000 or $0.05 per diluted share, from $812,000, or $0.09 per diluted share, for the 2011 first quarter. Non-GAAP net income decreased to $626,000, or $0.07 per diluted share, from $1.1 million, or $0.12 per diluted share, for the first quarter of 2011. Non-GAAP Adjusted EBITDA decreased to $1.2 million, or $0.13 per diluted share, from $1.9 million, or $0.21 per diluted share, for the first quarter of 2011. The results for the first quarter of 2012 included the operations of VCON, a video conferencing solutions company acquired in February 2012. The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.
At March 31, 2012, the company had cash and cash equivalents of $10.6 million, and no debt after paying for the acquisition of VCON.
"The revenue for the 2012 first quarter fell short of last year's record-setting numbers primarily due to a decline in sales in EMEA and softer sales for the Americas," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. "Moving forward, the recent acquisitions we have made will provide us with complementary technologies allowing us to enter new growth markets."
- In February, ClearOne completed the acquisition of VCON Video Conferencing opening new opportunities to grow enterprise sales through a new line of conferencing and collaboration products.
- In March, the company expanded its room conferencing product line with the introduction of the INTERACT® AT-Skype.
- Also in March, ClearOne launched its ANTHOLOGY™ media server and the SpeakerLinX SLX300 amplifier.
- In April 2012, the company launched the MagicBox WebSuite digital signage software platform that allows users to control their entire signage network from any web browser at any location.
Non-GAAP Financial Measures
ClearOne provides non-GAAP financial information in the form of Non-GAAP net income, EBITDA, Adjusted EBITDA and 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, EBITDA, Adjusted EBITDA and 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.