Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $12.90M
• Dividend Yield: N/A
• Average Volume (3M): 69.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -39.13%
• EPS Growth: -1501.28%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 45
• Industry: Communication Equipment
• EPS (TTM): -0.37
• Shares Outstanding: 25,992,994
• 10 Day Avg. Volume: 36,714
• 30 Day Avg. Volume: 69,489
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): -2.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Clearone Communications is facing significant financial and operational challenges, reflected in its low financial performance and technical analysis scores. The company's declining revenues, persistent losses, and negative cash flows are major concerns. The technical indicators suggest continued downward pressure on the stock, and valuation metrics highlight market skepticism. Without any positive catalysts from earnings calls or corporate events, these factors culminate in a low overall stock score.

Clearone Communications Business Overview & Revenue Model

Company Description

ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It also provides video products, such as video conferencing and collaboration solutions; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. In addition, the company offers professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. ClearOne, Inc. sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

ClearOne Communications generates revenue through the sale of its conferencing and collaboration products and solutions. Its key revenue streams include the direct sale of audio and visual communication equipment to end-users, as well as through a network of distributors and resellers. The company also earns from providing related services such as installation, maintenance, and support. Significant partnerships with technology integrators and resellers enhance its market reach and contribute to earnings by allowing the company to tap into new markets and customer bases. Additionally, ClearOne may leverage intellectual property and licensing agreements to generate additional income.

Clearone Communications Financial Statement Overview

Summary

Clearone Communications faces significant financial challenges with declining revenues, persistent losses, and deteriorating cash flows. Despite a relatively low leverage ratio, the negative profitability metrics and poor cash flow performance underline the need for a strategic turnaround to regain financial stability and growth.

Income Statement

Clearone Communications shows declining revenue and profitability over the years, with significant negative net and EBIT margins in recent periods. The revenue decreased substantially from 2022 to 2024, indicating a challenging growth trajectory. The gross profit margin has also declined, showcasing increasing cost pressures. The company needs to address its operational inefficiencies to return to profitability.

Balance Sheet

The balance sheet reveals moderate stability with a low debt-to-equity ratio, indicating low leverage. However, the equity ratio has been decreasing, reflecting reduced financial robustness. The return on equity is negative due to consistent net losses. Clearone must improve its asset utilization and equity efficiency to strengthen its financial position.

Cash Flow

Cash flow analysis shows that Clearone's operating cash flow has turned significantly negative in the latest year, with a deteriorating free cash flow trend. The company has been burning cash, highlighting liquidity concerns. The negative free cash flow to net income ratio indicates challenges in converting income into cash. A strategic overhaul is needed to restore cash flow health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.58M	11.39M	18.70M	25.20M	28.97M	29.07M
	Gross Profit
3.32M	2.63M	6.64M	9.46M	11.92M	12.56M
	EBIT
-8.93M	-9.21M	-6.49M	24.31M	-7.50M	-5.57M
	EBITDA
-2.82M	-9.21M	1.56M	31.25M	-4.19M	-2.81M
	Net Income Common Stockholders
-4.14M	-8.98M	-560.00K	20.56M	-7.69M	505.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.43M	1.42M	21.32M	984.00K	2.86M	4.92M
	Total Assets
43.98M	26.54M	50.69M	83.75M	66.19M	62.32M
	Total Debt
0.00	514.00K	665.00K	4.22M	6.04M	5.41M
	Net Debt
-11.43M	-903.00K	-17.17M	3.24M	4.97M	1.60M
	Total Liabilities
12.25M	5.21M	6.01M	9.62M	14.69M	12.51M
	Stockholders Equity
31.73M	21.33M	44.69M	74.13M	51.50M	49.81M
Cash Flow		Free Cash Flow
-1.36M	-6.31M	54.25M	-5.10M	-12.74M	-8.20M
	Operating Cash Flow
-1.09M	-6.12M	54.63M	-4.18M	-4.39M	-982.00K
	Investing Cash Flow
4.81M	4.19M	-4.88M	2.08M	-8.51M	-5.54M
	Financing Cash Flow
-15.72M	-14.47M	-32.89M	2.05M	10.21M	6.28M

Clearone Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLRO, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.57, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLRO.

Clearone Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELSE	61 Neutral	$14.38M	32.15	3.18%	―	9.56%	61.85%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
CXAI	49 Neutral	$21.79M	―	-94.70%	―	-3.04%	65.43%
CLRO	41 Neutral	$12.90M	―	-27.21%	―	-39.13%	-1501.28%
UAVS	34 Underperform	$13.30M	―	-1414.23%	―	-2.54%	80.26%
SMSI	33 Underperform	$15.82M	―	-83.85%	―	-49.70%	-59.04%

Clearone Communications Corporate Events

ClearOne Incentivizes Executives Amid Potential Strategic Moves

ClearOne, Inc. has granted incentive stock options to its CEO Derek Graham and CFO Simon Brewer to ensure their retention during a potential strategic transaction, such as a merger or sale. These options, part of the company’s executive compensation plan, allow them to purchase shares at $0.47 each, with expiration set for November 26, 2030.