ClearOne Reports Improved Performance for Fiscal 2008 Second Quarter.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 solid growth in sales and earnings for the second quarter of fiscal 2008 ended December 31, 2007. Revenue for the fiscal 2008 second quarter increased 7% to $10.8 million from $10.1 million in the same quarter of last year. Gross profit grew 21% to $6.4 million, or 59% of revenues, from $5.2 million, or 52% of revenues, for the prior year period. 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. rose to $1.9 million from $915,000 in the same quarter last year. Net income advanced to $1.8 million, or $0.16 per diluted share, from $1.1 million, or $0.09 per diluted share, a year ago. Under a share repurchase plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and announced in August 2007, the company purchased approximately 181,000 shares of its common stock during the fiscal 2008 second quarter and 88,000 shares in the fiscal first quarter. "The improved performance primarily reflected increased sales of our professional audio conferencing See audioconferencing. products, which carry our highest margins," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "Gross profit in the quarter also benefited from lower 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. reserve requirements Reserve Requirements Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank. and lower unfavorable manufacturing variances than in last year's second quarter. These factors, combined with the reduced number of shares outstanding, contributed to the 80% increase in our earnings per share." For the first six months of fiscal 2008, revenue increased to $20.2 million from $19.5 million in the same period of fiscal 2007. Gross profit grew to $11.5 million from $10.3 million for the prior year period. Operating income was $809,000 compared with operating income of $1.2 million in the same period last year. Net income was $858,000, or $0.08 per diluted share, compared with net income for the prior year period of $1.8 million, or $0.15 per diluted share. Financial results for the first half of fiscal 2008 include the establishment of a $1.9 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. . The company accrued $1.8 million in its first quarter and an additional $115,000 in its second quarter of fiscal 2008, 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. The company has been advised that the trial date has been moved to April 21, 2008. At December 31, 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 $22.7 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 A videoconferencing session via the Internet. In order to interact with other participants, attendees use either a Web application or an application downloaded into their client machines. 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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