2014

ClearOne Reports First Quarter 2010 Financial Results

SALT LAKE CITY, May 17 /PRNewswire-FirstCall/ -- ClearOne Communications, Inc. (Nasdaq: CLRO) today reported financial results for the first quarter ended March 31, 2010.

Revenue for the 2010 first quarter increased to $8.4 million from $7.6 million in the same quarter of last year.  Gross profit grew to $5.2 million, or 62% of revenue, from $4.1 million, or 53% of revenue, for the prior year period, primarily due to reduction in inventory write-offs and obsolescence.  Operating income was $457,000 compared with $430,000 in the same period of fiscal 2009.  Net income was $217,000, or $0.02 per diluted share, compared with $360,000, or $0.04 per diluted share.

"In the 2010 first quarter, revenue increased primarily due to the addition of NetStreams products to our portfolio, new product introductions and the continued rise in sales of our personal products," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne.  "Operating expenses increased as we continued to make investments in both NetStreams sales channel and product development.  We reduced general and administrative (G&A) expenses, if the reversal of contingent liabilities is excluded from G&A expenses in last year's first quarter, largely due to lower legal costs. Furthermore, we trimmed long-term inventory levels by more than $1.0 million and our cash position remained strong at $9.4 million, even after repaying $2 million of debt assumed as part of the NetStreams acquisition."

About ClearOne

ClearOne is a global communications solutions company that develops and sells conferencing, collaboration, streaming media and connectivity systems and other related products for audio, video, and web applications. The reliability, flexibility, and performance of our comprehensive solutions enhance the quality of life through better communication, education and entertainment.

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, including statements regarding the company's ability to successfully commercialize newer products and enter new markets, 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.

Contact:

ClearOne Communications, Inc.


Investor Relations


(801) 303-3555



http://www.b2i.us/irpass.asp?BzID=509&to=ea&s=0


FINANCIAL TABLES FOLLOW




CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands of dollars)





(unaudited)

(audited)


March 31, 2010

December  31, 2009

ASSETS



Current assets:



Cash and cash equivalents

$9,428

$9,494

Receivables, net of allowance for doubtful accounts

6,636

6,571

Inventories, net

6,468

6,236

Deferred income taxes

3,152

3,128

Prepaid expenses and other assets

760

1,609

Total current assets

26,444

27,038




Long-term inventories

5,172

6,412

Property and equipment, net

3,059

3,246

Intangibles, net

3,008

3,095

Goodwill

726

726

Long-term deferred tax asset

1,093

1,037

Other assets

21

21

Total assets

$39,523

$41,575




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:



Accounts payable

$1,586

$2,304

Accrued liabilities

2,131

1,768

Current maturities of long-term debt

-

2,000

Deferred product revenue

4,836

4,707

Total current liabilities

8,553

10,779




Deferred rent

428

466

Other long-term liabilities

1,152

1,232

Total liabilities

10,133

12,477




Total shareholders' equity

29,390

29,098

Total liabilities and shareholders' equity

$39,523

$41,575



CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of dollars, except per share amounts)

(unaudited)


Quarters ended March 31,


2010

2009




Revenue

$8,356

$7,602

Cost of goods sold

3,161

3,549

Gross profit

5,195

4,053




Operating expenses:



Sales & Marketing

1,902

1,690

Research and product development

1,904

1,810

General and administrative

932

123

Total operating expenses

4,738

3,623




Operating income (loss)

457

430




Other expense (income), net

(132)

60




Income before income taxes

325

490

Provision for income taxes

(108)

(130)

Net Income

217

360




Basic earnings (loss) per common share

$0.02

$0.04

Diluted earnings (loss) per common share

$0.02

$0.04




Basic weighted average shares outstanding

8,929,174

8,914,000

Diluted weighted average shares outstanding

9,036,225

9,032,383



SOURCE ClearOne Communications, Inc.




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