ClearOne, Inc. Reports First Quarter 2025 Financial Results
-Five new products introduced in Q1 2025-
-Year-over-Year Cost Reductions Reflect Continued Benefits of Cost Optimization Initiatives-
In Q1 2025, ClearOne introduced five new products demonstrating continued commitment to meeting customer needs through innovation. One of those new products, the BMA 360DX, won a Best of Show award at the Integrated Systems Europe 2025 Exhibition in
Our work through early 2025 has focused on mitigating the impacts of production shortages through maintaining consistent dialogues, product demonstrations, and feedback cycles with end users and channel partners, along with improving our visibility at key industry events. In addition, we have maintained our investments in marketing to ensure the visibility of our products to end users looking for ways to improve the quality of audio and video for their meetings. On March 27, 2025, ClearOne entered into an agreement with RBW Capital Partners LLC and Dawson James Securities, Inc. to assist the Company with capital raising efforts and the sale of the Company by way of a negotiated merger or consolidation, including a reverse merger, the negotiated sale of all or substantially all of the Company’s assets, the sale, via negotiated tender offer, of the Company’s issued and outstanding shares of stock, or a spin-off of the Company’s current business and operations to its current stockholders.
Operational Highlights
-
The Company decreased sales and research and product development expenses by
15% and23% , respectively, year-over-year. -
On January 16, 2025, we launched the BMA 360DX ceiling tile beamforming microphone array with an integrated DSP processor that provides everything needed to combine, route, and process all the audio signals with no compromises. The BMA 360DX won a Best of Show award in the AV Technology category at the Integrated Systems Europe 2025 exhibition in
Barcelona, Spain . - On January 20, 2025, we announced the launch of the Versa® 120D USB-C Docking Station with Dante®, designed to simplify and enhance hybrid meeting experiences. The Versa 120D is a versatile collaboration solution combining a USB-C docking station and Dante audio networking into a single, easy-to-use device.
- On January 22, 2025, we introduced the DIALOG® AERO, a wideband UHF 2-channel encrypted digital wireless microphone solution with over 100 MHz of RF tuning range. The DIALOG® AERO features an intuitive interface with a large, easy-to-read LCD display that provides real-time information on critical settings.
- On January 24, 2025, we introduced the UNITE 260N Pro, a professional 4K Ultra HD camera with NDI®|HX, designed to meet the requirements of NDI® workflows.
- On January 27, 2025, we announced the addition of a 4-channel Access Point and a 4-bay Dock to our award-winning DIALOG® UVHF Wireless Microphone System.
Financial Summary
The Company uses certain non-GAAP financial measures and reconciles those to GAAP measures in the attached tables.
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Q1 2025 revenue was |
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GAAP gross profit/loss in Q1 2025 was |
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Operating expenses in Q1 2025 improved to |
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GAAP net loss in Q1 2025 was |
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Non-GAAP net loss in Q1 2025 was |
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($ in 000, except per share) |
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Three months ended March 31, |
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2025 |
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2024 |
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Change in % Favorable/(Adverse) |
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GAAP |
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|
|
|
|
|
|
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Revenue |
$ |
2,313 |
|
|
$ |
3,622 |
|
|
(36) |
|
Gross profit |
|
121 |
|
|
1,151 |
|
|
(89) |
||
Operating expenses |
|
2,967 |
|
|
|
3,229 |
|
|
8 |
|
Operating loss |
|
(2,846) |
|
|
(2,078 |
) |
|
(37) |
||
Net loss |
|
(2,834) |
|
|
(1,898 |
) |
|
(49) |
||
Diluted loss per share |
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(0.11) |
|
|
(0.08 |
) |
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(50) |
||
Non-GAAP |
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|
|
|
|
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Non-GAAP operating expenses |
$ |
2,893 |
|
$ |
3,095 |
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|
7 |
||
Non-GAAP operating loss |
|
(2,772) |
|
|
(1,942 |
) |
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(43) |
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Non-GAAP net loss |
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(2,760) |
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|
(1,762 |
) |
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(57) |
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Non-GAAP Adjusted EBITDA |
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(2,686) |
|
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(1,764 |
) |
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(52) |
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Non-GAAP diluted loss per share |
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(0.11) |
|
|
(0.07 |
) |
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(57) |
||
Balance Sheet Highlights
As of March 31, 2025, cash, cash equivalents and investments were
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 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 Quarterly Report on Form 10-Q (the “10-Q”) filed by the Company for the same period with the Securities and Exchange Commission (the “SEC”) and all 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, 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-Q, the 10-K, and the Public Filings.
CLEARONE, INC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par value)
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March 31,
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December 31,
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
961 |
|
|
$ |
1,417 |
|
Receivables, net of allowance of |
|
|
1,909 |
|
|
|
2,208 |
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Inventories, net |
|
|
9,866 |
|
|
|
11,224 |
|
Income tax receivable |
|
|
27 |
|
|
|
10 |
|
Prepaid expenses and other assets |
|
|
4,324 |
|
|
|
3,894 |
|
Total current assets |
|
|
17,087 |
|
|
|
18,753 |
|
Long-term inventories, net |
|
|
4,905 |
|
|
|
4,920 |
|
Property and equipment, net |
|
|
442 |
|
|
|
500 |
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Operating lease - right of use assets, net |
|
|
672 |
|
|
|
750 |
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Intangibles, net |
|
|
1,500 |
|
|
|
1,539 |
|
Other assets |
|
|
73 |
|
|
|
82 |
|
Total assets |
|
$ |
24,679 |
|
|
$ |
26,544 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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|
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|
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Accounts payable |
|
$ |
1,910 |
|
|
$ |
1,804 |
|
Accrued liabilities |
|
|
1,628 |
|
|
|
1,724 |
|
Deferred product revenue |
|
|
12 |
|
|
|
17 |
|
Total current liabilities |
|
|
3,550 |
|
|
|
3,545 |
|
Operating lease liability, net of current |
|
|
460 |
|
|
|
514 |
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Other long-term liabilities |
|
|
1,155 |
|
|
|
1,154 |
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Total liabilities |
|
|
5,165 |
|
|
|
5,213 |
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Shareholders' equity: |
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Common stock, par value |
|
|
26 |
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|
24 |
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Additional paid-in capital |
|
|
32,700 |
|
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|
31,672 |
|
Accumulated other comprehensive loss |
|
|
(319) |
|
|
(306 |
) |
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Accumulated deficit |
|
|
(12,893) |
|
|
(10,059 |
) |
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Total shareholders' equity |
|
|
19,514 |
|
|
|
21,331 |
|
Total liabilities and shareholders' equity |
|
$ |
24,679 |
|
|
$ |
26,544 |
|
CLEARONE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Dollars in thousands, except per share amounts)
|
|
Three months ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
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Revenue |
|
$ |
2,313 |
|
|
$ |
3,622 |
|
Cost of goods sold |
|
|
2,192 |
|
|
|
2,471 |
|
Gross profit |
|
|
121 |
|
|
1,151 |
|
|
|
|
|
|
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Operating expenses: |
|
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|
|
|
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|
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Sales and marketing |
|
|
1,116 |
|
|
|
1,312 |
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Research and product development |
|
|
691 |
|
|
|
894 |
|
General and administrative |
|
|
1,160 |
|
|
|
1,023 |
|
Total operating expenses |
|
|
2,967 |
|
|
|
3,229 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(2,846) |
|
|
(2,078 |
) |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
— |
|
|
— |
||
Other income, net |
|
|
12 |
|
|
|
178 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(2,834) |
|
|
(1,900 |
) |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
— |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,834) |
|
$ |
(1,898 |
) |
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
24,748,551 |
|
|
|
23,969,148 |
|
Diluted weighted average shares outstanding |
|
|
24,748,551 |
|
|
|
23,969,148 |
|
|
|
|
|
|
|
|
|
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Basic loss per share |
|
$ |
(0.11) |
|
$ |
(0.08 |
) |
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Diluted loss per share |
|
$ |
(0.11) |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
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Net loss |
|
$ |
(2,834) |
|
$ |
(1,898 |
) |
|
Unrealized loss on available-for-sale securities, net of tax |
|
|
— |
|
|
22 |
||
Change in foreign currency translation adjustment |
|
|
(13) |
|
|
(2 |
) |
|
Comprehensive loss |
|
$ |
(2,847) |
|
$ |
(1,878 |
) |
|
CLEARONE, INC.
UNAUDITED RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except per share values)
|
|
Three months ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
GAAP operating loss |
|
$ |
(2,846) |
|
$ |
(2,078 |
) |
|
Stock-based compensation |
|
|
23 |
|
|
|
26 |
|
Amortization of intangibles |
|
|
51 |
|
|
|
110 |
|
Non-GAAP operating loss |
|
$ |
(2,772) |
|
$ |
(1,942 |
) |
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(2,834) |
|
$ |
(1,898 |
) |
|
Stock-based compensation |
|
|
23 |
|
|
|
26 |
|
Amortization of intangibles |
|
|
51 |
|
|
|
110 |
|
Other income adjustment |
|
|
— |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
(2,760) |
|
$ |
(1,762 |
) |
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(2,834) |
|
$ |
(1,898 |
) |
|
Number of shares used in computing GAAP diluted loss per share |
|
|
24,748,551 |
|
|
|
23,969,148 |
|
GAAP diluted loss per share |
|
$ |
(0.11) |
|
$ |
(0.08 |
) |
|
Non-GAAP net loss |
|
$ |
(2,760) |
|
$ |
(1,762 |
) |
|
Number of shares used in computing Non-GAAP diluted loss per share |
|
|
24,748,551 |
|
|
|
23,969,148 |
|
Non-GAAP diluted loss per share |
|
$ |
(0.11) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(2,834) |
|
$ |
(1,898 |
) |
|
Stock-based compensation |
|
|
23 |
|
|
|
26 |
|
Interest expense |
|
|
— |
|
|
— |
|
|
Depreciation |
|
|
74 |
|
|
|
— |
|
Amortization of intangibles |
|
|
51 |
|
|
|
110 |
|
Other income adjustment |
|
|
— |
|
|
— |
||
Provision (benefit) for income taxes |
|
|
— |
|
|
(2 |
) |
|
Non-GAAP Adjusted EBITDA |
|
$ |
(2,686) |
|
$ |
(1,764 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250519094416/en/
Investor Relations Contact:
Simon Brewer
385-426-0565
investor_relations@clearone.com
http://investors.clearone.com
Source: ClearOne
