Q4 Revenue Growth of 37 Percent Year-over-Year to a Record $12.6 Million; 2010 Revenue Growth of 31 Percent to a record $41.3 million
SALT LAKE CITY, March 10, 2011 -- ClearOne Communications, Inc. (Nasdaq: CLRO) today reported financial results for the fourth quarter and full year ended December 31, 2010.
During the fourth quarter of 2010, revenue increased 37% to $12.6 million from $9.2 million in the same quarter of last year. Gross profit during the fourth quarter of 2010 rose to $7.5 million, or 60% of revenue, from $5.6 million, or 61% of revenue, for the prior year period. Adjusted operating income for the fourth quarter of 2010, which excludes $2.2 million of legal expenses accrued in connection with the indemnification of a former ClearOne Officer, was $2.3 million. Operating income for the fourth quarter of 2009 was $609,000. Net income during the fourth quarter of 2010 was $817,000, or $0.09 per diluted share, compared with $699,000, or $0.08 per diluted share, for the comparable period in 2009.
For the 2010 full year, revenue increased 31% to $41.3 million from $31.5 million for 2009. Gross profit rose to $24.6 million, or 60% of revenue, from $16.8 million, or 53% of revenue, for the prior year. Adjusted operating income for 2010, which excludes $2.2 million of legal expenses accrued in connection with the indemnification of a former ClearOne Officer, was $4.0 million. Adjusted operating loss for 2009, which excludes credits for $1.2 million received on insurance settlements and a $1.1 million reversal of accrued legal expenses in connection with the indemnification of a former ClearOne Officer, was $2.9 million. Net income for 2010 was $2.4 million, or $0.27 per diluted share, compared with $384,000, or $0.04 per diluted share, for 2009.
At December 31, 2010, the company had cash and cash equivalents of $11.4 million and no long-term debt.
"ClearOne had an outstanding quarter and an outstanding year on all fronts," said Zee Hakimoglu, President, Chief Executive Officer and Chairman of ClearOne. "We established a beach head with new products for the Unified Communications market. We grew strategic partner relationships in these markets. We acquired strategic technology for networked multimedia streaming solutions through the acquisition of NetStreams to complement our conferencing and collaboration solutions. And, we achieved record revenue and profitability growth for the quarter and for the year."
"Throughout 2010, we continued to build operational momentum. Increased demand for our products, both in domestic and international markets, combined with new product introductions significantly contributed to our strong financial performance."
"Looking ahead, we are confident of sustaining the momentum and continuing our strong financial and operational performance into 2011. We are particularly encouraged by the potential for our recently launched Collaborate™, an all-in-one voice, video and data collaboration console for users of Unified Communications or popular cloud based web services. We believe this innovative solution has many applications for organizations of any size and promises to be a strategic product in our solutions portfolio."