Clearone (CLRO) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.47 million, or $ 0.05 a share in the quarter, against a net profit of $1.37 million, or $0.14 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $0.15 million, or $0.02 a share compared with $1.76 million or $0.18 a share, a year ago. Revenue during the quarter dropped 10.40 percent to $11.68 million from $13.03 million in the previous year period. Gross margin for the quarter contracted 777 basis points over the previous year period to 57.18 percent. Operating margin for the quarter stood at negative 4.50 percent as compared to a positive 15.13 percent for the previous year period.
Operating loss for the quarter was $0.53 million, compared with an operating income of $1.97 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.37 million compared to $2.52 million in the prior year period. At the same time, adjusted operating margin contracted 1620 basis points in the quarter to 3.13 percent from 19.34 percent in the last year period.
"2017 is trending positively," said Zee Hakimoglu, president and chief executive officer. "In the first quarter, our new Converge® Pro 2 platform gained market traction with revenue more than doubling sequentially and contributing to an improved gross margin. Also, video solutions continued to make steady, strong gains with revenue growing 60% over Q1 2016. The combination, despite typical seasonality, fueled sequential total revenue growth of 9%.
Working capital declinesClearone has witnessed a decline in the working capital over the last year. It stood at $29.86 million as at Mar. 31, 2017, down 16.43 percent or $5.87 million from $35.74 million on Mar. 31, 2016. Current ratio was at 3.76 as on Mar. 31, 2017, down from 4.39 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 122 days for the quarter from 267 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 130 days for the quarter compared with 278 days for the previous year period. At the same time, days payable outstanding was almost stable at 69 days for the quarter, when compared with the previous year period.
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