ClearOne Reports Fiscal 2008 First Quarter Results.SALT LAKE CITY -- ClearOne Communications, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CLRO CLRO Corporation of London Record Office ) today reported financial results for the first quarter of fiscal 2008 ended September 30, 2007. Revenue for the first three months of fiscal 2008 amounted to $9.4 million, the same as in the comparable prior year period. Gross profit was $5.1 million, or 54% of revenues, for both the fiscal 2008 and 2007 first quarters. Gross margin as a percentage of revenues in the fiscal 2008 first quarter decreased slightly compared with the two preceding quarters, due to an increase in the company's reserve for inventory obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. required to account for slow-moving inventory and other manufacturing variances. The company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fiscal 2008 first quarter of $1.1 million after estimating and establishing a $1.8 million accrual for a contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. . This compares to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $289,000 in the fiscal 2007 first quarter. Net loss was $924,000, or $0.08 per share, compared to net income of $677,000, or $0.06 per diluted share, for the same period last year. "Excluding the fiscal 2008 first quarter accrual for the contingent liability, the company would have reported an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and improved bottom line performance compared with the prior year first quarter," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "This is due, in part, to our continued focus on enhancing operating efficiencies and managing expenses." In accordance with Statement of Financial Accounting Standards No. 5, Accounting for Contingencies, ClearOne accrued $1.8 million in its fiscal 2008 first quarter, representing the probable amount that as of the date of the financial statements could be reasonably estimated of its liability, through trial, associated with the advancement of funds related to indemnification agreements with two former officers. As disclosed in July 2007, ClearOne was informed that two of its former officers have been indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Attorney's Office for the District of Utah. The company has been advised that a trial date has been set for January 22, 2008. ClearOne is cooperating fully with the U.S. Attorney's office in this matter and has been advised that it is neither a target nor a subject of the investigation or indictment. At September 30, 2007, the company had cash, cash equivalents, and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $23.6 million and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . About ClearOne ClearOne is a communications solutions company that develops and sells audio conferencing systems and other related products for audio, video, and web conferencing applications. The reliability, flexibility, and performance of ClearOne's comprehensive solutions create a natural communications environment, which saves organizations time and money by enabling more effective and efficient communication. For more information, visit ClearOne's website at www.clearone.com. 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, including statements regarding the company's ability to successfully commercialize newer products and enter new markets, 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. http://www.b2i.us/irpass.asp?BzID=509&to=ea&s=0 [TABLE OMITTED] [TABLE OMITTED] |
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