ClearOne Reports 40% Growth in Q1, Q2 and Q3 Sales in 2020 Over 2019

ClearOne Earnings

There are very few publicly traded companies in the commercial AV market who report exclusively ProAV product sales. For example, Sony is a public company but, when they report sales, its residential sales are mixed in with commercial sales so you don’t really have a feeling of which division is driving revenue. But, ClearOne exclusively sells in the ProAV market. And, as we all likely know, they are a UCC-focused company so it’s worth reporting their 2020 revenue numbers.

This morning, ClearOne reported financial results for the three and nine month periods ended Sept. 30, 2020. Here’s a financial summary:

  • Revenue in Q3 2020 was $8.4 million, compared to $6.0 million in Q3 2019 and million $6.4 in Q2 2020. The increase in year-over-year as well as sequential revenues was mainly due to the increase in revenue from video products, personal audio conferencing products and beamforming microphone array products. Despite this revenue growth in Q3 2020, revenue from ClearOne’s audio conferencing products and microphones are far below the levels prior to infringement of the company’s patents.
  • GAAP gross profit in Q3 2020 was $3.5 million compared to $2.5 million in Q3 2019 and $2.6 million in Q2 2020. GAAP gross profit margin was 41.8% in Q3 2020, compared to 42.3% in Q3 2019 and 41.2% in Q2 2020. Gross profit margin remained fairly consistent through the compared periods.
  • Operating expenses in Q3 2020 were $4.7 million, compared to $4.6 million in Q3 2019 and $4.5 million in Q2 2020. Non-GAAP operating expenses in Q3 2020 were $4.2 million, compared to $4.2 million in Q3 2019 and $4.0 million in Q2 2020. The sequential increase in operating expenses is mainly due to the increase in commissions paid to employees and independent reps.
  • GAAP net loss in Q3 2020 was $1.3 million, or $0.07 per share, compared to net loss of $2.0 million, or $0.12 per share, in Q3 2019 and net loss of $1.9 million, or $0.12 per share, in Q2 2020. The sequential and year-over-year decline in GAAP net loss was primarily due to increase in gross profit attributable to increase in revenue.
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At Sept. 30, 2020, cash, cash equivalents and investments were $8.6 million, as compared with the same amount at Dec. 31, 2019. The company carries a debt of $5.0 million on account of senior convertible notes issued in December 2019 and a Paycheck Protection Program (PPP) loan in April 2020. The Company intends to use the entire PPP loan amount for qualifying expenses and to apply for forgiveness of the PPP loan.