Workflow
ClearOne(CLRO) - 2024 Q3 - Quarterly Report
CLROClearOne(CLRO)2024-11-14 21:03

Revenue Performance - Overall revenue decreased by 49% in Q3 2024 to 2.5millioncomparedto2.5 million compared to 4.9 million in Q3 2023, primarily due to a 50% decline in audio conferencing revenue [57]. - Revenue for the first nine months of 2024 decreased to 8.4millionfrom8.4 million from 14.6 million in the same period of 2023, reflecting a 48% decline in audio conferencing and a 39% decrease in microphones [70]. - Sales in the Americas declined by 61% in Q3 2024 compared to Q3 2023, with all sales regions experiencing revenue loss [69]. Profitability and Loss - Net loss increased to (2.1)millioninQ32024from(2.1) million in Q3 2024 from (1.4) million in Q3 2023, driven by decreased revenues and gross margin [59]. - Gross profit margin decreased to 24.4% in Q3 2024 from 33.1% in Q3 2023, attributed to inventory scrapping and selling aged inventory at larger discounts [58]. Operating Expenses - Total operating expenses in Q3 2024 were 2.8million,adecreasefrom2.8 million, a decrease from 3.1 million in Q3 2023 [76]. - Research and Development (R&D) expenses decreased to 2.5millionfortheninemonthsendedSeptember30,2024,comparedto2.5 million for the nine months ended September 30, 2024, compared to 2.8 million for the same period in 2023 [79]. - General and Administrative (G&A) expenses decreased to 1.0millioninQ32024from1.0 million in Q3 2024 from 1.1 million in Q3 2023, and YTD G&A expenses were 2.8millioncomparedto2.8 million compared to 3.4 million in 2023 [80]. - Interest expense was 0inQ32024,downfrom0 in Q3 2024, down from 0.1 million in Q3 2023, and YTD interest expense decreased to 0.3millionfrom0.3 million from 0.5 million in 2023 [81]. Cash Flow and Position - Cash and cash equivalents as of September 30, 2024, were approximately 1.7million,downfrom1.7 million, down from 17.8 million as of December 31, 2023 [85]. - Cash used in operating activities was approximately 4.6millionfortheninemonthsendedSeptember30,2024,adecreaseofapproximately4.6 million for the nine months ended September 30, 2024, a decrease of approximately 55.7 million from 51.1millionprovidedinthesameperiodin2023[86].−Cashprovidedbyinvestingactivitieswas51.1 million provided in the same period in 2023 [86]. - Cash provided by investing activities was 2.9 million for the nine months ended September 30, 2024, compared to 6.8millionusedinthesameperiodin2023[87].−ThecompanybelievesitscurrentcashpositionwillmeetoperatingneedsthroughatleastNovember14,2025[89].InventoryandPurchases−AsofSeptember30,2024,totalinventorywas6.8 million used in the same period in 2023 [87]. - The company believes its current cash position will meet operating needs through at least November 14, 2025 [89]. Inventory and Purchases - As of September 30, 2024, total inventory was 16.5 million, including non-current inventory of 2.2million,comparedtototalinventoriesof2.2 million, compared to total inventories of 13.8 million as of December 31, 2023 [90]. - The company had open purchase orders of approximately $3.5 million as of September 30, 2024, primarily for inventory purchases [90]. Strategic Initiatives - The company aims to return to operating profits through strategic initiatives focused on product innovation and cost reduction [60]. - The DIALOG® 20 USB wireless microphone system launched in January 2024 saw a 319% increase in unique visitors at ISE 2024 compared to 2023 [55]. - The company expects increased costs associated with electronic raw materials to continue affecting operations through 2024 and 2025 [57]. Geographic Revenue Distribution - Approximately 61.6% of revenue in the first nine months of 2024 was derived from operations outside North and South America [65].