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ClearOne Reports Fiscal 2009 Second Quarter Results

^{Published on 2009-01-29 12:01:12, Last Modified on 2009-01-29 12:03:00 - Market Wire}
 

SALT LAKE CITY--([ BUSINESS WIRE ])--ClearOne Communications, Inc. (NASDAQ:CLRO) today reported financial results for the second quarter and first six months of fiscal 2009 ended December 31, 2008.

For the fiscal 2009 second quarter, revenue decreased to $10.0 million from $10.8 million in the same quarter of last year. Gross profit was $5.8 million, or 58% of revenue, compared with $6.4 million, or 59% of revenue, for the prior year period. Net income was $604,000, or $0.07 per diluted share, compared with net income of $1.8 million, or $0.16 per diluted share, for the same period last year. During the first fiscal quarter of 2009, ClearOne repurchased 1.3 million shares of its common stock in a tender offer. As a result, shares outstanding used to calculate earnings per share decreased to 9.0 million for the fiscal 2009 second quarter from 10.9 million for the fiscal 2008 second quarter.

"Our financial results for the quarter were impacted by the current economic environment," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "To better position us for the long term, we have implemented strategic initiatives designed to enhance our sales and marketing efforts and continue to invest in new product development. Also, between November 2008 and January 2009, we strengthened our balance sheet and enhanced liquidity with the sale, at par value, of our entire balance of auction rate securities."

For the first six months of fiscal 2009, revenue was $20.2 million, approximately even with the first six months of last year. Gross profit grew to $12.4 million, or 61% of revenue, compared with $11.5 million, or 57% of revenue, for the prior year period. Net income increased to $1.7 million, or $0.18 per diluted share, compared with net income of $858,000, or $0.08 per diluted share, for the same period last year. Diluted weighted average shares outstanding used to calculate earnings per share decreased to 9.6 million for the first six months of fiscal 2009 from 11.0 million for the same period of fiscal 2008.

At December 31, 2008, the company had cash, cash equivalents, and investments of $12.0 million and no long-term debt. In addition, inventory levels of certain key products were higher to buffer against potential disruptions in the supply chain.

About ClearOne

ClearOne is a communications solutions company that develops and sells audio conferencing systems and other related products for audio, video, and web conferencing applications. The reliability, flexibility, and performance of ClearOne's comprehensive solutions create a natural communications environment, which saves organizations time and money by enabling more effective and efficient communication. For more information, visit ClearOne's website at [ www.clearone.com ].

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.

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