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ClearOne Inc. (CLRO-1.72%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $2.5 million from $4.9 million in the same quarter the previous year. The decline is attributed to a significant decrease in demand for audio conferencing products and microphones.
Cost of goods sold for the quarter was $1.892 million, representing 76% of revenue, compared to 67% in the same quarter of the previous year. This increase in cost ratio is due to discounting products and increased vendor costs.
The company reported a gross profit of $612,000 for the quarter, compared to $1.616 million in the previous year, with the decline attributed to increased inventory scrap and write-off costs.
Sales and marketing expenses remained consistent at $1.067 million compared to $1.119 million in the previous year.
Research and product development expenses were $782,000, down from $889,000, primarily due to a reduction in personnel.
General and administrative expenses decreased to $951,000 from $1.097 million, primarily due to reduced insurance and amortization expenses.
Net loss for the quarter was $2.062 million, compared to $1.351 million in the previous year. The increase in net loss was mainly due to a decrease in revenues and gross margin.
Cash used in operating activities was $4.575 million, while cash provided by investing activities was $2.914 million, primarily due to proceeds from sales of marketable securities.
ClearOne had a working capital of $19.712 million as of September 30, 2024. The company acknowledges substantial doubt about continuing as a going concern due to decreased cash reserves.
The filing also details contractual obligations totaling $4.3 million, with $3.8 million due within one year.
The company does not anticipate cash dividend payments to common stockholders in the near future.
ClearOne continues to focus on product innovation and cost reduction as strategic initiatives to return to generating operating profits.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ClearOne Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.