Keep an eye on stock — ClearOne, Inc. (CLRO) reports financial results

ClearOne (NASDAQ: CLRO) jumped 1.17% with the finishing price of $7.08 in Friday Trading Session. With Latest positive move, stock price showed -37.05% lower in value from one year high price and revealed 5.70% higher in value from its one year low price. In the recent week ClearOne, Inc. stock price volatility was noted 2.31% while for the last month volatility was seen at 3.48%. Its Average True Range (ATR) shows a number of 0.28. Return on assets (ROA) results to -13.90%. While Return on investment (ROI) reached to 2.80%.

ClearOne (NASDAQ: CLRO), a global provider of audio and visual communication solutions, reported financial results for the three months and twelve months ended December 31, 2017.

“Our recently introduced products and the video category of our business continued to make progress in the fourth quarter,” said Zee Hakimoglu, president and chief executive officer. “Notwithstanding the overall revenue decline, Converge Pro 2, our new platform for professional audio conferencing, along with our Beamforming Microphone Array 2 made significant gains in the Pro AV market and posted robust quarter over quarter revenue growth of 48%. Our video category, especially the Collaborate® suite of video collaboration products has continued its revenue growth with year over year increases. Our confidence in our solutions and the potential for success with our strategy are reinforced by these successes.”

Financial Summary The Company uses certain non-GAAP financial measures and reconciles those to GAAP measures in the attached tables.

Q4 2017 revenue was $9.3 million, compared to $10.7 million in Q4 2016 and $10.6 million in Q3 2017. The year-over-year decrease as well as sequential revenue decline reflect the continuing transition to the next generation professional audio conferencing platform, and the on-going harm of infringement of ClearOne’s patents.

GAAP gross profit in Q4 2017 was $4.8 million, compared to $5.7 million in Q4 2016 and $6.5 million in Q3 2017. GAAP gross profit margin was 51% in Q4 2017, compared to 53% in Q4 2016 and 62% in Q3 2017. Year over year gross margin decline was mainly due to increased inventory obsolescence costs. Sequential decline in gross margin was largely due to higher than usual gross margin from the large order that was fulfilled in Q3 2017.

Operating expenses in Q4 2017 were $5.8 million which included net litigation proceeds of $0.8 million, compared to $6.8 million in Q4 2016 and $20.0 million in Q3 2017 which included impairment charges of $13.54 million. The majority of the decrease in operating expenses over Q4 2016 is attributable to reduced legal expenses in general in Q4 2017 and due to capitalization of legal expenses related to patent litigation. Non-GAAP operating expenses in Q4 2017 were $6.1 million, compared to $5.3 million in Q4 2016 and $6.0 million in Q3 2017. The year over year increase in Non-GAAP operating expenses was mainly due to the increase in R&D expenditure.

Net loss in Q4 2017 was $3.6 million, or $0.43 per share, compared to net loss of $1.1 million, or $0.12 per share, in Q4 2016 and net loss of $9.3 million, or $1.07 per share, in Q3 2017. Net loss in Q4 2017 was largely caused by the reduction in tax benefits of approximately $2.6 million due to changes in federal income tax rates effective 2018. Non-GAAP net loss was $2.3 million, or $0.27 per share, in Q4 2017, compared to non-GAAP net loss of $0.1 million in Q4 2016 and net income of $0.8 million, or $0.09 per share, in Q3 2017. Non-GAAP net loss in Q4 2017 was caused by lower revenues and increased R&D expenditures mentioned in the previous paragraphs as well as reduction in tax benefit claimed due to tax rate change.

The -2.82% declining picture painted by the trends generated around 20 SMAs. The established market sentiment toward the stock has created a trading environment which can suitably be described as pessimistic.

There has been declining move seen around 50 SMAs. The stock price is showing -9.13% distance below 50 SMA. On the surface, it seems as the higher the 50-day moving average goes, the more bullish the market is (and the lower it goes, the more bearish). In practice, however, the reverse is true. The 50-day moving average is perceived to be the dividing line between a stock that is technically healthy and one that is not. Furthermore, the percentage of stocks above their 50-day moving average helps determine the overall health of the market. Many market traders also use moving averages to determine profitable entry and exit points into specific securities.

ClearOne, Inc. (CLRO) has demonstrated declining trend based on recent movement of 200 SMA with -12.16% during the course of recent market activity. This trend reveals recent direction. The current direction of 200 SMA is downward. When the price over the last 200 days is moving with increasing trend, look for buy opportunities and when it shows decreasing trend the price is below the last 200 days, look for sell opportunities.

The current value of the RSI is 42.06. The relative strength index (RSI) readings highlights overbought above 70 and oversold below 30. The stock also has a beta of 0.35. When beta is less/more than 1, it can be interpreted that the stock is theoretically less/more volatile than the market – something traders will surely be keeping an eye on.

In terms of profitability, The Company has a profit margin of -26.90%, gross margin of 57.60% and an operating of -37.60%. The stock price changed 0.17% in the past week. Shares of the company have performed -18.13% over the last three months and moved -26.23% over the last 12- months.

Analysts contributed mean rating at 1.5. This recommendation scale based between 1 and 5. Analysts offer the company with a rating of 3 would be a sign of a Hold rating. Analysts pass on shares a rating of 1 or 2 would be signifying a Buy. A rating of 4 or 5 would tip to a Sell suggestion.

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