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ClearOne Reports Second Quarter 2015 Financial Results
Company Reports Record Q2 Gross Profit and Operating Income
Second Quarter 2015 Highlights
- Gross margin increased to 64% from 57%
- Non-GAAP operating income up 79%
- Non-GAAP net income up 39%
- Non-GAAP adjusted EBITDA up 70%
- Revenue down 1% to $14.0 million
ClearOne (NASDAQ: CLRO), a global provider of audio and visual communication solutions, today reported financial results for the three and six months ended June 30, 2015.
For the 2015 second quarter, revenue decreased 1% to $14.0 million from $14.1 million for the second quarter of 2014. Gross profit was $9.0 million, or 64% of revenue, compared with $8.1 million, or 57% of revenue, for the second quarter of 2014. Non-GAAP operating income increased 79% to $2.9 million from $1.6 million for the second quarter of 2014. Non-GAAP net income increased 39% to $1.9 million, or $0.20 per diluted share, from $1.4 million, or $0.14 per diluted share, for the second quarter of 2014. Non-GAAP Adjusted EBITDA increased 70% to $3.2 million, or $0.33 per diluted share, from $1.9 million, or $0.19 per diluted share, for the second quarter of 2014.
For the six months ended June 30, 2015, revenue increased 3% to $27.6 million from $26.8 million for the six months ended June 30, 2014. Gross profit was $17.5 million, or 63% of revenue, compared with $15.8 million, or 59% of revenue, for the six months ended June 30, 2014. Non-GAAP operating income increased 81% to $5.4 million from $3.0 million for the six months ended June 30, 2014. Non-GAAP net income increased 62% to $3.6 million, or $0.37 per diluted share, from $2.2 million, or $0.23 per diluted share, for the six months ended June 30, 2014. Non-GAAP Adjusted EBITDA increased 72% to $6.0 million, or $0.63 per diluted share, from $3.5 million, or $0.36 per diluted share, for the six months ended June 30, 2014.
Cash, cash equivalents and investments totaled $36.0 million at June 30, 2015, up from $33.6 million at December 31, 2014. The company continued to have no debt.
"During the second quarter, we reported record gross profit and operating income," said Zee Hakimoglu, President and Chief Executive Officer. "Revenue however, was down modestly due to several factors, including a temporary delay in shipping a major project and a lull in the U.S. market during the month of May. The ongoing effects of a strong U.S. dollar, weakness in EMEA and Australia markets and lower spending by the China government also impacted our revenue."
"Nevertheless, we are confident in our ability to generate positive revenue growth in the second half of the current year and beyond. We continue to successfully execute our operating plan and are encouraged by, among other things, a number of recent, initial product installations with large new marquee customers, both domestic and international."
Unveiled CONNECT Bluetooth
In June, the company introduced CONNECT� Bluetooth�, a compact and portable USB adapter that brings Bluetooth connectivity to its line of personal, premium and professional audio products, including CHAT� speakerphones, INTERACT� mixers and CONVERGE� products. CONNECT Bluetooth simply and conveniently enables mobile devices to connect directly to ClearOne audio products to make mobile calls and provides audio bridging capability that can connect PC-based voice or video calls and mobile phone calls into a unified group conference.
Expanded CONVERGE� Matrix Line
In June, the company released two new models in its CONVERGE� Matrix line of Dante�-based network audio distribution solutions, to complement its larger scale 256- and 512-channel mixers and routers. The new, smaller scale 64 and 128 channel models work equally well with Dante digital network audio distribution technology, interoperate with all third-party Dante devices and accommodate a full spectrum of system sizes and applications.
Introduced New, Innovative Media Collaboration Series with "True Cloud" Functionality
Also in June, the company launched a new series of integrated packages in its COLLABORATE� line of professional collaboration solutions, the world's first technology that combines low cost appliances with powerful, scalable, cloud collaboration capabilities. The COLLABORATE media appliance provides standards-based video conferencing with a wide assortment of collaboration tools, including wireless presentation and whiteboarding, streaming, recording and multi-party conferencing, and adds more functionality, flexibility and participant value to elevate the company's leadership in the enterprise conferencing marketplace.
Non-GAAP Financial Measures
ClearOne provides non-GAAP financial information in the form of non-GAAP operating income, non-GAAP net income, non-GAAP Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and corresponding earnings per share to investors to supplement GAAP financial information. ClearOne believes that excluding certain items from GAAP results allows ClearOne's management to better understand ClearOne's consolidated financial performance from period to period as management does not believe that the excluded items are reflective of underlying operating performance. Non-GAAP operating income, non-GAAP net income, non-GAAP Adjusted EBITDA and corresponding earnings per share excludes certain costs and expenses, the details of which are provided below in the tables containing the reconciliation between GAAP and non-GAAP financial measures. The exclusion of these items in the non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. ClearOne believes non-GAAP financial measures will provide investors with useful information to help them evaluate ClearOne's operating results and projections. This non-GAAP financial information is not meant to be considered in isolation or as a substitute for operating income, net income 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 with this release.
ClearOne is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for voice and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. More information about the company can be found 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 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.
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