ClearOne, Inc. (CLRO) has reported 49.98 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.21 million, or $0.13 a share in the quarter, compared with $2.42 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2 million, or $0.22 a share compared with $2.84 million or $0.30 a share, a year ago.
Revenue during the quarter dropped 18.88 percent to $12.91 million from $15.91 million in the previous year period. Gross margin for the quarter contracted 462 basis points over the previous year period to 59.41 percent. Total expenses were 88.97 percent of quarterly revenues, up from 77.96 percent for the same period last year. That has resulted in a contraction of 1101 basis points in operating margin to 11.03 percent.
Operating income for the quarter was $1.42 million, compared with $3.51 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.47 million compared to $4.19 million in the prior year period. At the same time, adjusted operating margin contracted 720 basis points in the quarter to 19.12 percent from 26.32 percent in the last year period.
"In 2016, we are executing our business plan, and now we offer the most technically innovative products in the marketplace to meet the growing demand for audio conferencing, network media streaming, video conferencing and media collaboration, supported by a growing portfolio of more than 100 patents and patent applications," said Zee Hakimoglu, president and chief executive officer.
Working capital declines
ClearOne, Inc. has witnessed a decline in the working capital over the last year. It stood at $33.62 million as at Sep. 30, 2016, down 14.24 percent or $5.58 million from $39.20 million on Sep. 30, 2015. Current ratio was at 4.38 as on Sep. 30, 2016, down from 4.80 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 121 days for the quarter from 236 days for the last year period. Days sales outstanding went up to 61 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 119 days for the quarter compared with 229 days for the previous year period. At the same time, days payable outstanding went up to 58 days for the quarter from 44 for the same period last year.
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