ClearOne, Inc. Reports Second Quarter 2024 Financial Results
- Sequential and Year-over-Year OpEx Reductions Reflect Continued Benefits of Cost Optimization Initiatives-
Revenue declined
Operational Highlights
-
The Company showcased its full line of collaboration and conferencing solutions at Infocomm 2024, including seamless integration with popular collaboration solutions from other companies and a comprehensive portfolio of solutions for various applications and meeting room sizes. The Company captured
60% more sales leads due to in-person visitors during InfocommUSA 2024 compared to InfocommUSA 2023. - The Company introduced the Versa Lite BMA 360D in Q2 2024. This innovative bundle combines ClearOne’s industry-leading BMA 360D Dante® enabled microphone array ceiling tile with the Versa® USB22D Dante® adapter, offering a perfect audio solution for any conferencing space with an easy connection to any computer or room device via USB.
-
The Company reduced operating expenses by
10.1% sequentially and9.33% year-over-year.
Graham continued, “During the first half of 2024, our team has been diligently working to win back customers who have defected to competing brands. We believe, although there can be no assurance, those efforts will bear fruit soon. We continue to see strong interest in our innovative products as demonstrated by the
Financial Summary
The Company uses certain non-GAAP financial measures and reconciles those to GAAP measures in the attached tables.
| • |
|
Q2 2024 revenue was |
|
|
|
| • |
|
GAAP gross profit/(loss) in Q2 2024 was |
|
|
|
| • |
|
Operating expenses in Q2 2024 improved to |
|
|
|
| • |
|
GAAP net loss in Q2 2024 was |
|
|
|
| • |
|
Non-GAAP net loss in Q2 2024 was |
($ in 000, except per share) |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change in %
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Change in %
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
2,304 |
|
$ |
5,483 |
|
(58 |
) |
$ |
5,926 |
|
$ |
9,661 |
|
(39 |
) |
|||||||
Gross profit |
|
(20 |
) |
|
1,848 |
|
(101 |
) |
|
1,131 |
|
|
3,163 |
|
(64 |
) |
|||||||
Operating expenses |
|
2,904 |
|
|
3,203 |
|
9 |
|
|
6,133 |
|
|
6,707 |
|
9 |
|
|||||||
Operating loss |
|
(2,924 |
) |
|
(1,355 |
) |
(116 |
) |
|
(5,002 |
) |
|
(3,544 |
) |
(41 |
) |
|||||||
Net loss |
|
(2,820 |
) |
|
(1,019 |
) |
(177 |
) |
|
(4,718 |
) |
|
(1,851 |
) |
(155 |
) |
|||||||
Diluted loss per share |
|
(0.12 |
) |
|
(0.04 |
) |
(200 |
) |
|
(0.20 |
) |
|
(0.08 |
) |
(150 |
) |
|||||||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-GAAP operating expenses |
$ |
2,830 |
$ |
3,051 |
|
7 |
$ |
5,925 |
|
$ |
6,413 |
|
8 |
|
|||||||||
Non-GAAP operating loss |
|
(2,835 |
) |
|
(1,201 |
) |
(136 |
) |
|
(4,777 |
) |
|
(3,250 |
) |
(47 |
) |
|||||||
Non-GAAP net loss |
|
(2,731 |
) |
|
(865 |
) |
(216 |
) |
|
(4,493 |
) |
|
(2,907 |
) |
(55 |
) |
|||||||
Non-GAAP Adjusted EBITDA |
|
(2,660 |
) |
|
(710 |
) |
(275 |
) |
|
(4,367 |
) |
|
(2,389 |
) |
(83 |
) |
|||||||
Non-GAAP diluted loss per share |
|
(0.11 |
) |
|
(0.04 |
) |
(175 |
) |
|
(0.19 |
) |
|
(0.12 |
) |
(55 |
) |
|||||||
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 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, 2023 (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
|
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,450 |
|
|
$ |
17,835 |
|
Current marketable securities |
|
|
1,852 |
|
|
|
3,480 |
|
Patent cross license receivable |
|
|
— |
|
|
|
4,000 |
|
Receivables, net of allowance of |
|
|
2,574 |
|
|
|
3,279 |
|
Inventories, net |
|
|
14,599 |
|
|
|
10,625 |
|
Income tax receivable |
|
|
27 |
|
|
|
36 |
|
Prepaid expenses and other assets |
|
|
3,855 |
|
|
|
4,062 |
|
Total current assets |
|
|
25,357 |
|
|
|
43,317 |
|
Long-term marketable securities |
|
|
621 |
|
|
|
916 |
|
Long-term inventories, net |
|
|
1,772 |
|
|
|
3,143 |
|
Property and equipment, net |
|
|
552 |
|
|
|
530 |
|
Operating lease - right of use assets, net |
|
|
804 |
|
|
|
990 |
|
Intangibles, net |
|
|
1,582 |
|
|
|
1,689 |
|
Other assets |
|
|
108 |
|
|
|
109 |
|
Total assets |
|
$ |
30,796 |
|
|
$ |
50,694 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,901 |
|
|
$ |
1,945 |
|
Accrued liabilities |
|
|
1,726 |
|
|
|
2,290 |
|
Deferred product revenue |
|
|
23 |
|
|
|
30 |
|
Total current liabilities |
|
|
3,650 |
|
|
|
4,265 |
|
Operating lease liability, net of current |
|
|
515 |
|
|
|
665 |
|
Other long-term liabilities |
|
|
1,079 |
|
|
|
1,079 |
|
Total liabilities |
|
|
5,244 |
|
|
|
6,009 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Common stock, par value |
|
|
24 |
|
|
|
24 |
|
Additional paid-in capital |
|
|
31,616 |
|
|
|
46,047 |
|
Accumulated other comprehensive loss |
|
|
(294 |
) |
|
|
(310 |
) |
Accumulated deficit |
|
|
(5,794 |
) |
|
|
(1,076 |
) |
Total shareholders' equity |
|
|
25,552 |
|
|
|
44,685 |
|
Total liabilities and shareholders' equity |
|
$ |
30,796 |
|
|
$ |
50,694 |
|
CLEARONE, INC.
|
||||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
Revenue |
|
$ |
2,304 |
|
|
$ |
5,483 |
|
|
$ |
5,926 |
|
|
$ |
9,661 |
|
||||
Cost of goods sold |
|
|
2,324 |
|
|
|
3,635 |
|
|
|
4,795 |
|
|
|
6,498 |
|
||||
Gross profit |
|
|
(20 |
) |
|
|
1,848 |
|
|
|
1,131 |
|
|
|
3,163 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
1,191 |
|
|
|
1,323 |
|
|
|
2,503 |
|
|
|
2,515 |
|
||||
Research and product development |
|
|
868 |
|
|
|
873 |
|
|
|
1,762 |
|
|
|
1,916 |
|
||||
General and administrative |
|
|
845 |
|
|
|
1,007 |
|
|
|
1,868 |
|
|
|
2,276 |
|
||||
Total operating expenses |
|
|
2,904 |
|
|
|
3,203 |
|
|
|
6,133 |
|
|
|
6,707 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating loss |
|
|
(2,924 |
) |
|
|
(1,355 |
) |
|
|
(5,002 |
) |
|
|
(3,544 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
— |
|
|
|
(91 |
) |
|
|
— |
|
|
|
(383 |
) |
||||
Other income, net |
|
|
119 |
|
|
|
437 |
|
|
|
297 |
|
|
|
2,103 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss before income taxes |
|
|
(2,805 |
) |
|
|
(1,009 |
) |
|
|
(4,705 |
) |
|
|
(1,824 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
|
15 |
|
|
|
10 |
|
|
|
13 |
|
|
|
27 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
|
$ |
(2,820 |
) |
|
$ |
(1,019 |
) |
|
$ |
(4,718 |
) |
|
$ |
(1,851 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic weighted average shares outstanding |
|
|
23,969,148 |
|
|
|
23,955,802 |
|
|
|
23,969,148 |
|
|
|
23,955,785 |
|
||||
Diluted weighted average shares outstanding |
|
|
23,969,148 |
|
|
|
23,955,802 |
|
|
|
23,969,148 |
|
|
|
23,955,785 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic loss per share |
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
||||
Diluted loss per share |
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(2,820 |
) |
|
$ |
(1,019 |
) |
|
$ |
(4,718 |
) |
|
$ |
(1,851 |
) |
||||
Unrealized loss on available-for-sale securities, net of tax |
|
|
(3 |
) |
|
|
14 |
|
|
|
19 |
|
|
|
14 |
|
||||
Change in foreign currency translation adjustment |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
4 |
|
||||
Comprehensive loss |
|
$ |
(2,824 |
) |
|
$ |
(1,006 |
) |
|
$ |
(4,702 |
) |
|
$ |
(1,833 |
) |
||||
CLEARONE, INC.
|
||||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating loss |
|
$ |
(2,924 |
) |
|
$ |
(1,355 |
) |
|
$ |
(5,002 |
) |
|
$ |
(3,544 |
) |
||||
Stock-based compensation |
|
|
39 |
|
|
|
25 |
|
|
|
65 |
|
|
|
47 |
|
||||
Amortization of intangibles |
|
|
50 |
|
|
|
129 |
|
|
|
160 |
|
|
|
247 |
|
||||
Non-GAAP operating loss |
|
$ |
(2,835 |
) |
|
$ |
(1,201 |
) |
|
$ |
(4,777 |
) |
|
$ |
(3,250 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(2,820 |
) |
|
$ |
(1,019 |
) |
|
|
(4,718 |
) |
|
|
(1,851 |
) |
||||
Stock-based compensation |
|
|
39 |
|
|
|
25 |
|
|
|
65 |
|
|
|
47 |
|
||||
Amortization of intangibles |
|
|
50 |
|
|
|
129 |
|
|
|
160 |
|
|
|
247 |
|
||||
Other income adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,350 |
) |
||||
Non-GAAP net loss |
|
$ |
(2,731 |
) |
|
$ |
(865 |
) |
|
$ |
(4,493 |
) |
|
$ |
(2,907 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(2,820 |
) |
|
$ |
(1,019 |
) |
|
$ |
(4,718 |
) |
|
$ |
(1,851 |
) |
||||
Number of shares used in computing GAAP diluted loss per share |
|
|
23,969,148 |
|
|
|
23,955,802 |
|
|
|
23,969,148 |
|
|
|
23,955,785 |
|
||||
GAAP diluted loss per share |
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
||||
Non-GAAP net loss |
|
$ |
(2,731 |
) |
|
$ |
(865 |
) |
|
$ |
(4,493 |
) |
|
$ |
(2,907 |
) |
||||
Number of shares used in computing Non-GAAP diluted loss per share |
|
|
23,969,148 |
|
|
|
23,955,802 |
|
|
|
23,969,148 |
|
|
|
23,955,785 |
|
||||
Non-GAAP diluted loss per share |
|
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.12 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(2,820 |
) |
|
$ |
(1,019 |
) |
|
$ |
(4,718 |
) |
|
$ |
(1,851 |
) |
||||
Stock-based compensation |
|
|
39 |
|
|
|
25 |
|
|
|
65 |
|
|
|
47 |
|
||||
Interest expense |
|
|
— |
|
|
|
91 |
|
|
|
— |
|
|
|
383 |
|
||||
Depreciation |
|
|
56 |
|
|
|
54 |
|
|
|
113 |
|
|
|
108 |
|
||||
Amortization of intangibles |
|
|
50 |
|
|
|
129 |
|
|
|
160 |
|
|
|
247 |
|
||||
Other income adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,350 |
) |
||||
Provision for income taxes |
|
|
15 |
|
|
|
10 |
|
|
|
13 |
|
|
|
27 |
|
||||
Non-GAAP Adjusted EBITDA |
|
$ |
(2,660 |
) |
|
$ |
(710 |
) |
|
$ |
(4,367 |
) |
|
$ |
(2,389 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815414420/en/
Investor Relations Contact:
Simon Brewer
385-426-0565
investor_relations@clearone.com
http://investors.clearone.com
Source: ClearOne, Inc.
