ClearOne Communications Inc. (CLRO, Financial) filed Quarterly Report for the period ended 2010-09-30.
Clearone Communications Inc. has a market cap of $30.81 million; its shares were traded at around $3.45 with and P/S ratio of 0.86. CLRO is in the portfolios of Chuck Royce of Royce& Associates.
During 2010 Q3 and 2009 Q3, the net change in deferred revenue was a net recognition of revenue of $334,000 and a net deferral of revenue of $595,000, respectively. During 2010 YTD and 2009 YTD, the net change in deferred revenue was a net recognition of revenue of $8,000 and $16,000 respectively. See “Critical Accounting Policies and Estimates” under “Revenue and Associated Allowance for Revenue Adjustments and Doubtful Accounts” below for a detailed discussion of deferred revenue.
2010 Q3 operating expenses were approximately $5.5 million, an increase of approximately $0.9 million from $4.6 million in 2009 Q3 or an increase of 19% over 2009 Q3 expenses. Operating expenses during 2010 YTD were $15.4 million compared to $13.4 million during 2009 YTD after excluding insurance settlement proceeds.
G&A expenses increased approximately by $620,000 during 2010 YTD in comparison to G&A expenses in 2009 YTD. During 2009 YTD, G&A expenses were reduced by approximately $1.1 million for reversal of accrued legal expenses and $145,000 for receipt of an insurance settlement. After excluding the above said reversal in 2009 Q1 and receipt of an insurance settlement mentioned above, G&A expenses during 2010 YTD decreased approximately by $672,000 compared to 2009 YTD. The decrease was primarily due to reduction in legal expenses and compensation cost partially offset by increases in the executive compensation, allowance for doubtful accounts, accounting services and amortization of intangibles. We continue to incur high legal expenses due to litigation to protect our intellectual property and to defend ourselves from indemnification claims made by former officers.
Other income, net during 2010 Q3 decreased by approximately $55,000 compared to 2009 Q3 primarily due to reduction in interest income. Other expense, net during 2010 YTD was ($120,000) compared to other income, net of approximately $352,000 during 2009 YTD. The difference was due to reduction in interest income by $287,000, a loss of approximately $111,000 incurred on disposal of fixed assets and interest expense of approximately $51,000.
Benefit from income taxes during 2010 Q3 and 2009 Q3 were $194,000 and $304,000 respectively. Provision for taxes during 2010 YTD was ($81,000) compared to benefit from income taxes of $493,000 during 2009 YTD.
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Clearone Communications Inc. has a market cap of $30.81 million; its shares were traded at around $3.45 with and P/S ratio of 0.86. CLRO is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Our revenues were $10.4 million and $28.7 million during the three and nine months ended September 30, 2010, compared to $7.6 million and $22.3 million during the three and nine months ended September 30, 2009. Our gross profit increased by $2.3 million and $5.9 million during the three and nine months ended September 30, 2010. Net income rose to $987,000 during the three months ended September 30, 2010 (“2010 Q3”) compared to a net loss of $275,000 during the three months ended September 30, 2009 (“2009 Q3”). Net income for the nine months ended September 30, 2010 (“2010 YTD”) also improved to $1.6 million compared to a net loss of $317,000 during the nine months ended September 30, 2009 (“2009 YTD”). The increase in revenues and profits were the result of stabilizing market conditions in the global economy in favor of higher demand for our installed professional conferencing products, successful introduction of new products during the last 12 months and steady growth in demand for our products overseas. Nevertheless, we will continue our existing measures to control costs and monitor future trends closely in response to our observation of our customers deliberate selective spending. A detailed discussion of our results of operations follows below.During 2010 Q3 and 2009 Q3, the net change in deferred revenue was a net recognition of revenue of $334,000 and a net deferral of revenue of $595,000, respectively. During 2010 YTD and 2009 YTD, the net change in deferred revenue was a net recognition of revenue of $8,000 and $16,000 respectively. See “Critical Accounting Policies and Estimates” under “Revenue and Associated Allowance for Revenue Adjustments and Doubtful Accounts” below for a detailed discussion of deferred revenue.
2010 Q3 operating expenses were approximately $5.5 million, an increase of approximately $0.9 million from $4.6 million in 2009 Q3 or an increase of 19% over 2009 Q3 expenses. Operating expenses during 2010 YTD were $15.4 million compared to $13.4 million during 2009 YTD after excluding insurance settlement proceeds.
G&A expenses increased approximately by $620,000 during 2010 YTD in comparison to G&A expenses in 2009 YTD. During 2009 YTD, G&A expenses were reduced by approximately $1.1 million for reversal of accrued legal expenses and $145,000 for receipt of an insurance settlement. After excluding the above said reversal in 2009 Q1 and receipt of an insurance settlement mentioned above, G&A expenses during 2010 YTD decreased approximately by $672,000 compared to 2009 YTD. The decrease was primarily due to reduction in legal expenses and compensation cost partially offset by increases in the executive compensation, allowance for doubtful accounts, accounting services and amortization of intangibles. We continue to incur high legal expenses due to litigation to protect our intellectual property and to defend ourselves from indemnification claims made by former officers.
Other income, net during 2010 Q3 decreased by approximately $55,000 compared to 2009 Q3 primarily due to reduction in interest income. Other expense, net during 2010 YTD was ($120,000) compared to other income, net of approximately $352,000 during 2009 YTD. The difference was due to reduction in interest income by $287,000, a loss of approximately $111,000 incurred on disposal of fixed assets and interest expense of approximately $51,000.
Benefit from income taxes during 2010 Q3 and 2009 Q3 were $194,000 and $304,000 respectively. Provision for taxes during 2010 YTD was ($81,000) compared to benefit from income taxes of $493,000 during 2009 YTD.
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