ClearOne

SALT LAKE CITY, April 2, 2012 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported its financial results for the fourth quarter and full year ended December 31, 2011.

 

For the 2011 full year, revenue increased 12% to $46.1 million from $41.3 million for 2010.  Gross profit rose 12% to $27.5 million, or 60% of revenue, from $24.6 million, or 60% of revenue, for the prior year.  Operating expenses declined to $17.0 million from $22.8 million for 2010.  Operating income climbed to $10.6 million from $1.8 million for the prior year.  The company recorded a provision for income taxes of $3.7 million versus a benefit from income taxes of $681,000 for 2010.  Net income more than doubled to $6.9 million, or $0.75 per diluted share, from $2.4 million, or $0.27 per diluted share, for 2010.  Operating expenses, operating income and net income for 2011 were impacted by a favorable judgment award of $3.7 million related to litigation against Biamp Systems Corp. for theft of ClearOne trade secrets.  Operating expenses, operating income and net income for 2010 were affected by an unfavorable accrual of $2.2 million of legal expenses in connection with the indemnification of a former ClearOne Officer. Non-GAAP net income increased by 5% to $5.3 million, or $0.57 per diluted share, from $5.1 million, or $0.57 per diluted share, for 2010. Non-GAAP Adjusted EBITDA for 2011 increased by 37% to $9.0 million, or $0.97 per diluted share, from $6.6 million, or $0.74 per diluted share, for 2010. The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.

 

"Our strong 2011 financial results were primarily driven by increased demand for our portfolio of products in North America and Asia Pacific combined with consistent high gross margins," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne.  "Our continued stellar operational performance in 2011 is reflected in the 37% increase in adjusted EBITDA from a year ago.

 

"Looking ahead, we will leverage our technology acquisitions, benefit from the wealth of experience the retained management teams bring, and continue to develop our sales channels to enter significantly larger and higher growth markets."

 

For the 2011 fourth quarter, revenue was $12.0 million compared with $12.6 million for the fourth quarter of 2010.  Gross profit was $7.1 million, or 59% of revenue, compared with $7.5 million, or 60% of revenue, for the prior year fourth quarter.  Operating expenses declined to $5.0 million from $7.5 million in the prior year fourth quarter.  Operating income climbed to $2.1 million from $39,000 for the fourth quarter last year.  Net income grew to $1.4 million, or $0.15 per diluted share, from $817,000, or $0.09 per diluted share, for the 2010 fourth quarter. Operating expenses, operating income and net income for the prior year fourth quarter were affected by an unfavorable accrual of $2.2 million legal expenses in connection with the indemnification of a former ClearOne Officer. Non-GAAP net income decreased to $1.5 million, or $0.17 per diluted share, from $2.3 million, or $0.26 per diluted share, for 2010. Non-GAAP Adjusted EBITDA for 2011 decreased to $2.6 million, or $0.28 per diluted share, from $2.8 million, or $0.32 per diluted share, for 2010. The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.

 

At December 31, 2011, the company had cash and cash equivalents of $16.7 million, and no debt.