– Q4 and Full Year 2023 OpEx Decreased 14% and
21% Year-Over-Year, Respectively –
– Completed Outsourced Manufacturing Transition
from China to Singapore in Q4 2023, Resulting in Normalized Product
Output, and Reduced Backlog –
ClearOne (NASDAQ: CLRO), a global provider of audio and visual
communication solutions, reported financial results for the three-
and twelve-month periods ended December 31, 2023.
“Throughout the fourth quarter, we maintained efforts to expand
and accelerate shipments of our award-winning communication
solutions, all while driving a leaner, more efficient cost
structure,” said Derek Graham, CEO of ClearOne. “In line with our
expectations, we completed our outsourced manufacturing transition
from China to Singapore during the fourth quarter, resulting in our
manufacturing output returning to pre-transition levels. With a
more normalized production cadence, we have continued to drive
significant backlog reductions, as our most popular products are
now in stock and ready for same-day shipping as of late in the
fourth quarter. We are working with our contract manufacturers to
improve output and lead times across select remaining product
categories, including our wireless products.
"While our production improvements helped drive a slight
year-over-year increase in our fourth quarter revenue, our
full-year top-line performance reflects slower order flow in the
second half of the year, which we believe stems from the cumulative
impact of past production shortages. We have also faced sales
headwinds from our products’ lack of Microsoft Teams certification,
despite their longtime functional compatibility with this platform.
Our work through early 2024 has focused on mitigating these impacts
through maintaining consistent dialogues, product demonstrations,
and feedback cycles with customers and distributors, along with
improving our visibility at key industry events.
“Reflecting our sustained focus on optimizing costs, we drove
14% and 21% year-over-year decreases in operating expenses for the
fourth quarter and full year, respectively. We ended 2023 with over
$21 million in cash, cash equivalents, and marketable securities,
and we recently announced a special one-time cash dividend of $0.50
per share that will be payable on April 10, 2024. We believe this
upcoming dividend rewards our shareholders for their longtime
support of ClearOne, while still providing us a solid,
well-capitalized base from which to ramp shipments, drive improved
order flow, and return to revenue growth and profitability.”
Operational Highlights
- Completed the transition of the Company’s outsourced
manufacturing operations from China to Singapore in the fourth
quarter of 2023, enabling the Company to achieve same-day shipping
for its most popular products and restore broader production
volumes to pre-transition levels.
- Debuted new DIALOG® 20 USB 2-Channel Wireless Microphone at ISE
2024, enabling users to enhance hybrid meetings with local sound
reinforcement and less than four milliseconds of audio latency. The
DIALOG® UVHF Microphone System also received AV Technology
Magazine’s Best in Show Award.
- Exhibited and demonstrated the Company’s complete portfolio of
audio conferencing, visual collaboration, BYOD collaboration,
professional microphones, network management and AV networking
solutions at ISE 2024, including the new DIALOG® 20 USB 2-Channel
Wireless Microphone, BMA 360D, Versa® USB22D Dante Adapter, DIALOG®
UVHF Microphone System, and Versa® UCS2100 Collaboration Switcher
Kit.
- Announced a special one-time cash dividend of $0.50 per share
of ClearOne common stock in March 2024, reflecting the Company’s
robust balance sheet and commitment to its shareholders.
Graham continued: “Now that we have completed our manufacturing
transition, we are putting increased emphasis on innovation and
driving new product rollouts and shipments. We rolled out several
notable new product launches over the past year, such as the BMA
360D microphone array ceiling tile and DIALOG® UVHF Microphone
System. In these early months of 2024, we are continuing to evolve
our product portfolio, having recently debuted the DIALOG® 20 USB
2-Channel Wireless Microphone in January at ISE 2024. In fact, we
have already begun shipping our latest offering and are seeing good
order traction. While the first shipments of the DIALOG® UVHF have
been delayed to Q2 2024, we are hearing promising feedback on the
beta units we shipped to our partners and sales managers in Q1
2024. Additionally, industry reception and customer feedback on the
BMA 360D have been very positive.
“As we drive additional momentum for our audio and visual
communication solutions, we are also focused on improving our
products’ overall interoperability, ease of use, and global
presence. Our newest microphone solutions can be integrated with
DSPs from both our own product suite and those of separate
third-party manufacturers, offering greater flexibility for
customers and prospects. From an international standpoint, we are
seeking to expand our footprint in several key regions—such as the
Middle East and India—in which we have seen particular sales
strength and increased reception to our products. We are evaluating
further sales, marketing, and related investments in these
geographies to optimize our team for capitalizing on this
increasing demand.
“Moving further into 2024, we are committed to optimizing our
cost structure, driving product innovation, and solidifying
ClearOne as a preferred partner for current and prospective
customers. In conjunction with working to ramp shipments for the
BMA 360D and DIALOG® UVHF, we are focused on improving customer
experiences within our partner network to support additional
customer growth and retention. With a robust balance sheet and
improving product demand, we believe ClearOne is well-positioned to
drive towards future growth as we work to achieve profitability and
expand our market share.”
Financial Summary
The Company uses certain non-GAAP financial measures and
reconciles those to GAAP measures in the attached tables.
- Q4 2023 revenue was $4.2 million, compared to $4.0 million in
Q4 2022 and $4.9 million in Q3 2023. The sequential decrease was
driven by lower demand for the Company’s microphone products and
the cumulative impact of past product shortages. The year-over-year
improvement was primarily due to increased shipments of the
Company’s video products and beamforming microphone arrays.
- GAAP gross profit in Q4 2023 was $1.6 million, compared to $1.3
million in Q4 2022 and $1.6 million in Q3 2023. GAAP gross profit
margin was 38% in Q4 2023, compared to 31% in Q4 2022 and 33% in Q3
2023. Gross profit margin improved by approximately 5% sequentially
and approximately 7% year-over-year.
- Operating expenses in Q4 2023 were $3.3 million, compared to
$3.9 million in Q4 2022 and $3.1 million in Q3 2023. Non-GAAP
operating expenses in Q4 2023 were $3.2 million compared to $2.9
million in Q3 2023 and $3.4 million in Q4 2022. The sequential
increase was due to increase in legal fees and audit and accounting
charges, and the year-over-year decrease in non-GAAP operating
expenses was mainly due to the continued benefits of the
cost-cutting measures initiated in 2022.
- GAAP net income in Q4 2023 was $2.6 million, or $0.11 per
share, compared to a net income of $24.0 million, or $0.97 per
share, in Q4 2022 and a net loss of $(1.4) million, or $(0.06) per
share, in Q3 2023. The sequential improvement in net income was
primarily due to the recognition of a gain of $4 million from a
legal settlement which was partially offset by a decline in net
income due to higher operating expenses and lower gross margin. The
year-over-year decline was largely due to the recognition of a gain
of $33.6 million related to the one-time legal settlement
receivable of $55 million, net of unamortized capitalized legal
expenses of $21.4 million, in Q4 2022. This decline in net income
was partially offset by a decrease in the tax provision by $6.4
million, recognition of gain from a legal settlements of $4.0
million, an increase in interest income by $0.6 million, and an
increase in operating income by $0.9 million.
- Non-GAAP net loss in Q4 2023 was $(1.2) million, or $(0.05) per
share, compared to a Non-GAAP net loss of $(2.3) million, or
$(0.09) per share, in Q4 2022 and a Non-GAAP net loss of $(1.2)
million, or $(0.05) per share, in Q3 2023. Net loss was flat
sequentially, while the year-over-year improvement in net loss was
driven by an increase in interest income by $0.6 million and an
increase in operating income by $0.5 million.
($ in 000, except per share)
Three months ended December
31,
Year ended December
31,
2023
2022
Change in %
Favorable/(Adverse)
2023
2022
Change in %
Favorable/(Adverse)
GAAP
Revenue
$
4,154
$
4,021
3
$
18,704
$
25,205
(26
)
Gross profit
1,578
1,264
25
6,357
9,457
(33
)
Operating expenses
3,317
3,854
14
13,129
16,679
21
Operating loss
(1,739
)
(2,590
)
33
(6,772
)
(7,222
)
6
Net income (loss)
2,642
24,028
89
(560
)
20,556
103
Diluted income (loss) per share
0.11
0.97
(89
)
0.02
0.83
(102
)
Non-GAAP
Non-GAAP operating expenses
3,162
3,358
6
12,511
14,062
11
Non-GAAP operating loss
(1,582
)
(2,092
)
24
(6,147
)
(4,597
)
(34
)
Non-GAAP net income (loss)
(1,201
)
(2,292
)
48
(5,285
)
(5,165
)
(2
)
Non-GAAP Adjusted EBITDA
(681
)
(2,062
)
67
(4,076
)
(4,383
)
7
Non-GAAP diluted income (loss) per
share
(0.05
)
(0.09
)
44
(0.22
)
(0.19
)
(16
)
Balance Sheet Highlights
As of December 31, 2023, cash, cash equivalents and investments
were $21.3 million, as compared with $1.0 million as of December
31, 2022. As of December 31, 2023, the Company carried no aggregate
debt, having made the final $1.0 million principal payment on its
$3.0 million in senior secured convertible notes (the “Notes”) on
December 17, 2023. The Notes were originally issued in December
2019.
The Company’s 2023 year-end cash balance also reflects a $6.9
million income tax refund, which was reported as a receivable on
the balance sheet as of September 30, 2023. Subsequent to the
fourth quarter of 2023, the Company received an additional $4.0
million in cash related to a non-exclusive patent cross-licensing
agreement that was finalized and disclosed in December 2023.
On March 10, 2024 the Company's Board of Directors declared a
special dividend of $0.50 per share of the Company's stock and
eligible warrants to be paid on April 10, 2024. This is expected to
result in a cash outflow of approximately $14.5 million.
About ClearOne
ClearOne is a global market leader enabling conferencing,
collaboration, and network streaming solutions. 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 and the
possible outcomes of litigation, 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 Annual Report on Form 10-K (the “10-K”) 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 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-K and the Public Filings.
CLEARONE, INC
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par
value)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
17,835
$
984
Marketable securities
3,480
—
Legal settlement receivable
4,000
55,000
Receivables, net of allowance for doubtful
accounts of $326
3,279
3,603
Inventories, net
10,625
8,961
Income tax receivable
36
1,071
Prepaid expenses and other assets
4,062
7,808
Total current assets
43,317
77,427
Long-term marketable securities
916
—
Long-term inventories, net
3,143
2,707
Property and equipment, net
530
383
Operating lease – right of use assets,
net
990
1,047
Intangibles, net
1,689
2,071
Other assets
109
115
Total assets
$
50,694
$
83,750
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,945
$
1,284
Accrued liabilities
2,290
3,041
Deferred product revenue
30
63
Short-term debt
—
3,732
Total current liabilities
4,265
8,120
Long-term debt
—
—
Operating lease liability, net of
current
665
492
Other long-term liabilities
1,079
1,008
Total liabilities
6,009
9,620
Shareholders’ equity:
Common stock, par value $0.001, 50,000,000
shares authorized, 23,969,148 and 23,955,767 shares issued and
outstanding, respectively
24
24
Additional paid-in capital
46,047
74,910
Accumulated other comprehensive loss
(310
)
(288
)
Accumulated deficit
(1,076
)
(516
)
Total shareholders’ equity
44,685
74,130
Total liabilities and shareholders’
equity
$
50,694
$
83,750
CLEARONE, INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Dollars in thousands, except per
share amounts)
Year ended December
31,
2023
2022
Revenue
$
18,704
$
25,205
Cost of goods sold
12,347
15,748
Gross profit
6,357
9,457
Operating expenses:
Sales and marketing
4,897
5,517
Research and product development
3,671
4,390
General and administrative
4,561
6,772
Total operating expenses
13,129
16,679
Operating loss
(6,772
)
(7,222
)
Interest expense
(537
)
(420
)
Other income, net
7,183
35,102
Income (loss) before income taxes
(126
)
27,460
Provision for (benefit from) income
taxes
434
6,904
Net income (loss)
$
(560
)
$
20,556
Basic income (loss) per common share
$
(0.02
)
$
0.86
Diluted income (loss) per common share
$
(0.02
)
$
0.83
Basic weighted average shares
outstanding
23,958,154
23,937,962
Diluted weighted average shares
outstanding
23,958,184
25,189,147
Comprehensive income (loss):
Net income (loss)
$
(560
)
$
20,556
Other comprehensive income (loss):
Unrealized loss on available-for-sale
securities, net of tax
(15
)
(2
)
Change in foreign currency translation
adjustment
(7
)
(45
)
Comprehensive income (loss)
$
(582
)
$
20,509
CLEARONE, INC.
UNAUDITED RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except per
share values)
Three months ended December
31,
Year ended December
31,
2023
2022
2023
2022
GAAP operating loss
$
(1,739
)
$
(2,590
)
$
(6,772
)
$
(7,222
)
Stock-based compensation
28
24
108
113
Amortization of intangibles
129
474
517
2,512
Non-GAAP operating loss
$
(1,582
)
$
(2,092
)
$
(6,147
)
$
(4,597
)
GAAP net income (loss)
$
2,642
$
24,028
$
(560
)
$
20,556
Stock-based compensation
28
24
108
113
Amortization of intangibles
129
474
517
2,512
Other income adjustment
(4,000
)
(33,623
)
(5,350
)
(35,151
)
Tax effect
-
6,805
-
6,805
Non-GAAP net income (loss)
$
(1,201
)
$
(2,292
)
$
(5,165
)
$
(5,165
)
GAAP net income (loss)
$
2,642
$
24,028
$
(560
)
$
20,556
Number of shares used in computing GAAP
diluted income (loss) per share
23,960,776
24,947,851
23,958,184
25,189,147
GAAP diluted income (loss) per
share
$
0.11
$
0.97
$
(0.02
)
$
0.83
Non-GAAP net income (loss)
$
(1,201
)
$
(2,292
)
$
(5,285
)
$
(5,165
)
Number of shares used in computing
Non-GAAP diluted income (loss) per share
23,960,776
24,947,851
23,958,184
25,189,147
Non-GAAP diluted income (loss) per
share
$
(0.05
)
$
(0.09
)
$
(0.22
)
$
(0.19
)
GAAP net income (loss)
$
2,642
$
24,028
$
(560
)
$
20,556
Stock-based compensation
28
24
108
113
Interest expense
68
135
537
420
Depreciation
64
56
238
263
Amortization of intangibles
129
474
517
2,512
Other income adjustment
(4,000
)
(33,623
)
(5,350
)
(35,151
)
Provision for (benefit from) income
taxes
388
6,844
434
6,904
Non-GAAP Adjusted EBITDA
$
(681
)
$
(2,062
)
$
(4,076
)
$
(4,383
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240402956125/en/
Derek Graham 801-303-3425 investor_relations@clearone.com
http://investors.clearone.com
ClearOne (NASDAQ:CLRO)
過去 株価チャート
から 11 2024 まで 12 2024
ClearOne (NASDAQ:CLRO)
過去 株価チャート
から 12 2023 まで 12 2024
