ClearOne(US:CLRO)2022-05-18 16:00Revenue Performance - Overall revenue increased by 7% in Q1 2022 compared to Q1 2021, driven by significant growth in microphone revenues, despite a decline in video product revenues [87]. - Revenue increased to $7.5 million in 2022-Q1, a 7% increase from $7.0 million in 2021-Q1, driven by a 23% increase in microphones and a 13% increase in audio conferencing products, despite a 22% decrease in video products [99]. - Approximately 51% of total revenue for the year ended December 31, 2021, was derived from international operations, with expectations for this trend to continue [93]. Profitability and Loss - Gross profit margin decreased to 37.3% in Q1 2022 from 42.7% in Q1 2021, with net loss rising from $1.7 million to $2.0 million during the same period [88]. - Gross profit margin decreased from 42.7% in 2021-Q1 to 37.3% in 2022-Q1, negatively impacted by increased material costs and freight expenses due to supply chain constraints [102]. - Net loss for 2022-Q1 was $1.967 million, compared to a net loss of $1.655 million in 2021-Q1, reflecting a 19% increase in losses [99]. Operating Expenses - Total operating expenses rose to $4.7 million in 2022-Q1 from $4.5 million in 2021-Q1, with research and product development expenses increasing marginally to $1.4 million [105][108]. Cash Flow and Inventory - Cash and cash equivalents as of March 31, 2022, were approximately $1.4 million, up from $1.1 million as of December 31, 2021 [115]. - Net cash used in operating activities was approximately $1.0 million in 2022-Q1, an increase of $1.0 million compared to 2021-Q1 [116]. - Net cash provided by investing activities was $1.8 million in 2022-Q1, a change of $3.4 million from net cash used in investing activities of $1.7 million in 2021-Q1 [117]. - As of March 31, 2022, total inventory was $13.1 million, down from $13.6 million as of December 31, 2021, with non-current inventory accounting for $3.2 million [123]. - The company has approximately $4.8 million in open purchase orders primarily for inventory purchases [122]. Innovation and Product Development - The introduction of the DIALOG 10 USB microphone system won the 2022 NSCA Excellence in Product Innovation Award, highlighting the company's commitment to innovation [76]. - The Versa Lite CT microphone received Google Meet certification, indicating its competitiveness in the growing cloud meetings market [78]. - The company received a new patent for a beamforming microphone array system, enhancing its technological capabilities and potential market offerings [79]. - The company believes that product innovation and cost management strategies will help return to profitability in the future [100]. Market Conditions - Supply chain disruptions due to COVID-19 have caused fluctuations in costs, leading to reduced gross margins in 2021 and Q1 2022 [94]. - The installed audio conferencing market has been negatively impacted by COVID-19, but there has been increased demand for video products due to the work-from-home trend [94]. - The company faced ongoing patent infringement issues with Shure, which negatively impacted revenue from professional installed products and other product lines [87]. Strategic Focus - The company is focused on cost-cutting measures and accelerating product development to return to a growth trajectory [86].