SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2002
ClearOne Communications Inc.
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(Exact Name of Registrant as Specified in its Charter)
UTAH 0-17219 87-0398877
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
1825 Research Way, Salt Lake City, Utah 84119
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(Address of Principal Executive Offices) (Zip Code)
(801) 975-7200
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On April 23, 2002, ClearOne Communications Inc., (the "Company" or
"ClearOne"), issued a press release reporting the Company's financial results
for the fiscal quarter ended March 31, 2002. Set forth below is certain
financial information reported by ClearOne in the press release.
Financial Highlights From Continuing Operations
(unaudited)
Three Months Ended
3/31/02 3/31/01 Change
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Sales $ 14,171,156 $ 10,212,333 +39%
Net income $ 2,070,946 $ 1,359,032 +52%
Diluted earnings per share $ 0.20 $ 0.15 +33%
Nine Months Ended
3/31/02 3/31/01 Change
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Sales $ 37,973,838 $ 29,225,712 +30%
Net income $ 4,974,533 $ 3,905,397 +27%
Diluted earnings per share $ 0.51 $ 0.43 +19%
For the third quarter ended March 31, 2002, ClearOne reported net income from
continuing operations of $2.1 million, or $0.20 per fully diluted share, on
sales of $14.2 million. This represents a 52 percent increase in net income and
a 39 percent increase in sales over the same quarter last year, for which the
company reported net income from continuing operations of $1.4 million, or $0.15
per fully diluted share, on sales of $10.2 million. Gross margins for the
quarter were 61 percent compared to 58 percent for the same quarter last year.
For the first nine months of fiscal 2002, ClearOne reported net income from
continuing operations of $5.0 million, or $0.51 per fully diluted share, on
sales of $38.0 million. Comparatively, the company reported net income from
continuing operations of $3.9 million, or $0.43 per fully diluted share, on
sales of $29.2 million for the same period last year. Year-to-date gross margins
were 60 percent, up slightly from 59 percent last year.
ClearOne Communications Inc.
Condensed Statement of Continuing Operations
(unaudited)
Three Months Ended Nine Months Ended
3/31/02 3/31/01 3/31/02 3/31/01
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Sales $ 14,171,156 $ 10,212,333 $ 37,973,838 $ 29,225,712
Cost of goods sold 5,586,839 4,327,987 15,225,933 12,064,698
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Gross profit 8,584,317 5,884,346 22,747,905 17,161,014
Sales & marketing expenses 2,763,581 1,932,327 7,995,734 5,755,898
General & administrative expenses 1,542,983 1,133,525 4,101,769 3,630,578
Research & development expenses 1,122,973 720,426 3,044,497 1,760,921
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Total expenses 5,429,537 3,786,278 15,142,000 11,147,397
Operating Income 3,154,780 2,098,068 7,605,905 6,013,617
Other items (71,370) 69,277 139,188 252,083
Income tax expense (1,012,464) (808,313) (2,770,560) (2,360,303)
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Net income $ 2,070,946 $ 1,359,032 $ 4,974,533 $ 3,905,397
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Basic earnings per share $ 0.20 $ 0.16 $ 0.54 $ 0.46
Fully diluted earnings per share $ 0.20 $ 0.15 $ 0.51 $ 0.43
Basic shares outstanding 10,158,894 8,610,375 9,246,512 8,581,738
Fully diluted shares outstanding 10,614,839 9,047,289 9,755,909 9,026,182
ClearOne Communications Inc.
Balance Sheet
3/31/02 6/30/01
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(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 23,168,321 $ 6,852,243
Accounts receivable 14,192,043 7,284,393
Inventory 5,792,134 4,132,034
Deferred taxes 246,000 247,402
Other current assets 420,868 779,648
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Total current assets 43,819,366 19,295,720
Property and equipment, net 3,992,612 3,696,615
Other assets, net 10,037,281 4,605,288
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Total assets $ 57,849,259 $ 27,597,623
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LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,578,877 $ 568,782
Accrued expenses 1,320,052 1,129,528
Accrued income taxes 472,192 421,749
Current portion of capital leases 60,614 181,827
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Total current liabilities 3,431,735 2,301,886
Capital lease obligations 15,772 48,227
Deferred tax liability 746,000 746,000
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Total liabilities 4,193,507 3,096,113
Shareholders' equity:
Common stock 10,179 8,618
Additional paid-in capital 33,140,847 8,962,699
Retained earnings 20,504,726 15,530,193
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Total shareholders' equity 53,655,752 24,501,510
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Total liabilities and equity $ 57,849,259 $ 27,597,623
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CLEARONE COMMUNICATIONS INC.
(The Registrant)
By: Randall J. Wichinski
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Its: Chief Financial Officer