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ClearOne Communications Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 16, 2009 04:52PM
ClearOne Communications Inc. (CLRO) filed Quarterly Report for the period ended 2009-09-30.
Highlight of Business Operations:
Q1 2010 operating expenses were about $4.6 million, a decrease of $225,000, or 5%, from $4.8 million in Q1 2009. The following is a more detailed discussion of expenses related to sales and marketing, research and development and general and administrative.
Sales and Marketing (“S&M”) Expenses. S&M expenses include selling, customer service, and marketing expenses such as employee-related costs, allocations of overhead expenses, trade shows, and other advertising and selling expenses. S&M expenses during Q1 2010 decreased by approximately $374,000, or 19%, to $1.6 million compared to approximately $2.0 million in Q1 2009. As a percentage of revenue, S&M expenses during Q1 2010 and Q1 2009 were 21% and 18%, respectively. The decrease in S&M expenses during Q1 2010 over Q1 2009 was due primarily to decreased sales commissions paid to independent manufacturer sales representatives and lower marketing related expenses and travel expenses.
Operating loss during Q1 2010 was $646,000 compared to an operating income of $2.3 million in Q1 2009. The decrease in operating income of approximately $3.0 million was due to lower revenue and associated gross profit during Q1 2010 partially offset by the lower operating expenses discussed above.
As of September 30, 2009, our cash and cash equivalents were approximately $8.1 million and our marketable securities were approximately $2.1 million, a reduction of $1.7 million compared to cash and cash equivalents of approximately $9.8 million and marketable securities of $2.1 million as of June 30, 2009.
Net cash used in operating activities was $1.3 million in Q1 2010, a decrease of $1.5 million from the net cash provided by operating activities of $263,000 in Q1 2009. The year-over-year decrease can be attributed primarily to the decrease in net income.
Net cash flows used in investing activities were approximately $464,000 in Q1 2010 mostly towards purchase of property, plant and equipment. Net cash flows provided by investing activities were approximately $4.9 million in Q1 2009 with $5.2 million attributable to sale of marketable securities.
Stocks Discussed: CLRO,