SALT LAKE CITY, UTAH — February 27, 2013
ClearOne (NASDAQ: CLRO) today reported its financial results for the fourth quarter and full year ended December 31, 2012.
For the 2012 fourth quarter, revenue increased 9% to $13.0 million from $12.0 million for the fourth quarter of 2011. Gross profit was $7.4 million, or 57% of revenue, compared with $7.1 million, or 59% of revenue, for the fourth quarter of 2011. Operating income was $39.1 million and net income was $24.5 million, or $2.67 per diluted share, which included $38.3 million of proceeds from litigation, net. For the prior year fourth quarter, operating income was $2.1 million and net income was $1.4 million, or $0.15 per diluted share. Non-GAAP net income, which excludes proceeds from litigation, share-based compensation and other non-operating items, was $1.2 million, or $0.13 per diluted share, compared with $1.5 million, or $0.17 per diluted share, for fourth quarter 2011. Non-GAAP Adjusted EBITDA was $2.9 million, or $0.31 per diluted share, compared with $2.6 million, or $0.28 per diluted share, for fourth quarter of 2011.
For the 2012 full year, revenue was $46.4 million compared with $46.1 million for 2011. Gross profit was $27.3 million, or 59% of revenue, compared with $27.5 million, or 60% of revenue, for 2011. Operating income, which included $38.5 million of proceeds from litigation was $42.5 million and net income was $26.6 million, or $2.89 per diluted share. For the prior year, which included $3.7 million of proceeds from litigation, operating income was $10.6 million and net income was $6.9 million, or $0.75 per diluted share. Non-GAAP net income was $4.0 million, or $0.43 per diluted share, compared with $5.3 million, or $0.57 per diluted share, for 2011. Non-GAAP Adjusted EBITDA was $8.0 million, or $0.87 per diluted share, compared with $9.0 million, or $0.97 per diluted share, for 2011.
The reconciliation between GAAP and Non-GAAP measures is available in the tables attached to this release.
“We finished 2012 with a record performance due to substantial increase in demand for our products in North America. We are optimistic that our positive momentum will be not only sustained but further propelled by the introduction of new and innovative audio and video products into our channel,” said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. “The strong cash position we currently enjoy has also allowed us to increase our commitment to our stock buy-back program. We will also carefully evaluate over time, opportunities available to us and use the cash for selective infusions of technology, sales & marketing, infrastructure, and other investments to fuel our growth, as well as acquisitions that may strategically fit our business and are accretive to our performance.”
At December 31, 2012, the company had cash and cash equivalents of $55.5 million, up from $16.7 million at the end of the prior year, and no debt.
- December 2012. The company settled an arbitration proceeding for $45.0 million, subject to a 15% contingency legal fee paid to ClearOne’s litigation counsel.
- December 2012. The company established a distribution agreement with D&H Distributing, under which D&H will distribute ClearOne’s new line of software-based video conferencing solutions and its USB, analog and VoIP conference phones to authorized technology resellers and retailers in North America.
- December 2012. The company announced its new WS800 Digital Wireless Microphone System to complement its professionally installed audio conferencing product lines. The microphone system uses radio-frequency digital wireless signal transmission technology with highly secure encryption and is optimized to work with CONVERGE® Pro and INTERACT® Pro products.
- January 2013. The company appointed video conferencing veteran Adi Regev as Vice President of its video conferencing business. Regev will be responsible for the strategic positioning, business development and growth of the company’s COLLABORATE™ portfolio of software-based video conferencing products, which includes desktop video applications, room systems, and infrastructure and management solutions.
- February 2013. The company’s Board of Directors approved an increase in the company’s stock repurchase program to $10.0 million from $3.0 million of its outstanding shares of common stock in open market or privately negotiated transactions.