Company Reports Record Q1 Revenue, Gross Profit and Operating Income
SALT LAKE CITY, May 12, 2011 /PRNewswire/ -- ClearOne (NASDAQ: CLRO) today reported financial results for the first quarter ended March 31, 2011.
For the 2011 first quarter, revenues were a record $10.7 million, compared to $8.4 million for the 2010 first quarter. The revenue for 2011 first quarter increased year over year at a record 28%. Revenue increased year over year in all the major geographic regions including North America, Europe, Middle East and Africa (EMEA), China, India, Asia Pacific, and Latin America.
Gross profit increased by 21% to a record $6.3 million from $5.2 million for the 2010 first quarter. Operating income increased by a record 165% to a record $1.2 million from $457,000 for the prior year period. Net income increased by 274% to $812,000, or $0.09 per diluted share, from $217,000, or $0.02 per diluted share, for the 2010 first quarter.
Non-GAAP net income increased by 122% to $1.1 million, or $0.12 per diluted share, from $510,000, or $0.06 per diluted share, for the 2010 first quarter. The reconciliation between GAAP and Non-GAAP net income is available in the tables attached to this release.
The company ended the quarter with cash and cash equivalents of $13.5 million and no debt.
"ClearOne carried strong momentum from 2010 into the first quarter of 2011," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. "Our record year over year revenue growth in the first quarter was fueled by demand for our technology, products and brand.
"While double digit top line revenue growth gives us reason to feel satisfied with our results, our record gross profit, record operating income and impressive net income gives us further reason to feel encouraged that our execution is aligned with our strategy to balance top line revenue with bottom line profitability growth.
"We achieved several milestone events in the first quarter. In February, Frost & Sullivan recognized ClearOne with the 2010 Global Frost & Sullivan Award for Market Share Leadership in the installed audio conferencing endpoints market. We announced the availability of our new StreamNet® enabled iPod dock for system-wide streaming of audio content and metadata for Apple iPods, iTouches or iPhones. We also showcased our IBM Lotus Sametime-compatible unified communications solutions at IBM Lotusphere 2011. Finally, in the first quarter, ClearOne unveiled and demonstrated the Collaborate™, our groundbreaking all-in-one voice, video and data collaboration console at the Enterprise Connect industry conference.
"ClearOne expects to continue its fast growth in the rapidly transforming unified collaboration market. Our successful business planning and execution has strategically positioned us to capitalize on this vast and evolving market opportunity," Hakimoglu concluded.
Non-GAAP Financial Measures
ClearOne provides non-GAAP financial information in the form of Non-GAAP net income and 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 net income and EPS excludes certain costs and expenses, the details of which are provided in the tables below containing the reconciliation between GAAP and Non-GAAP net income. 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 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.