Wed, Aug 14, 5:29 PM (153 days ago)
For Q2 2024, ClearOne, Inc. reported a significant decline in revenue, totaling $2.3 million, down 58% from $5.5 million in Q2 2023. This drop was primarily driven by reduced demand across audio conferencing, microphones, and video products, exacerbated by previous production shortages and lack of Microsoft Teams certification. Gross profit margins turned negative at -0.9%, compared to 33.7% in Q2 2023, influenced by increased inventory scrapping and higher reserves. The net loss widened to $2.8 million from $1.0 million year-over-year, attributed to decreased revenues and rising operating expenses. Cash and cash equivalents plummeted to $2.5 million from $17.8 million at year-end 2023, reflecting a cash outflow of $2.7 million in H1 2024, a stark contrast to $52.9 million inflow in H1 2023, which included legal settlements. The company faces liquidity uncertainties, yet management believes that current cash and effective working capital management will support operations through mid-2025. The stock trades below $1, risking delisting from Nasdaq, which could hinder future capital raising efforts.