ClearOne, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in revenue, with total revenue for the three months ending September 30, 2024, at $2,504,000, a 49% decrease from $4,889,000 in the same period of 2023. For the nine months ended September 30, 2024, revenue was $8,430,000, down 42% from $14,550,000 in 2023. This decline was primarily attributed to a 50% drop in audio conferencing revenue, a 40% decrease in video products, and a 50% reduction in microphone sales.
Gross profit also fell sharply, with Q3 2024 gross profit at $612,000, a 62% decrease from $1,616,000 in Q3 2023. The gross profit margin decreased to 24.4% from 33.1% year-over-year, and for the first nine months of 2024, the gross profit margin was 20.7%, down from 32.8% in 2023.
The company's operating loss for Q3 2024 was $(2,188,000), compared to $(1,489,000) in Q3 2023, while the net loss increased to $(2,062,000) from $(1,351,000) in the prior year. For the nine-month period, the net loss was $(6,780,000), up from $(3,202,000) in 2023. Basic loss per share for Q3 2024 was $(0.09), compared to $(0.06) in Q3 2023.
ClearOne's financial position deteriorated, with total current assets decreasing to $23,039,000 as of September 30, 2024, down from $43,317,000 at the end of 2023. Cash and cash equivalents plummeted from $17,835,000 to $1,685,000 during the same period. Total assets decreased from $50,694,000 to $28,379,000, and total shareholders' equity fell from $44,685,000 to $23,501,000.
The company also faced operational challenges, including a significant decrease in cash inflow from operating activities, which shifted from a positive $51,143,000 in 2023 to a negative $(4,575,000) in 2024. This was largely due to the absence of legal settlement receipts that had bolstered cash flow in the previous year.
Strategically, ClearOne launched the DIALOG® 20 USB wireless microphone system in January 2024 and received accolades for its DIALOG® UVHF Wireless Microphone System at the Integrated Systems Europe (ISE) 2024. However, the company continues to grapple with intense competition, component availability issues, and challenges in obtaining Microsoft Teams certification, which have adversely affected revenue growth.
About CLEARONE INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.