Exhibit 99.1
Dear Fellow Shareholders:
It is time to vote your ClearOne proxy. You have less than fifteen days to have your voice heard.
ClearOne is on a roll thanks to the support and trust of you, our shareholders; the guidance of our board of directors; the vision and leadership of management; the enthusiasm of our partners; and, of course, the creative energy of our employees. We are delivering profitable growth and solid returns by managing our business with a relentless focus on operational excellence, product innovation and prudent use of hard-earned capital.
We are growing wealth for our shareholders:
| | • | | We grew revenues to $48.4 million in 2013 (twelve months ended September 30, 2013) from $35.7 million in 2009 (twelve months ended December 31, 2009), while maintaining gross margins of about 60% and consistently generating positive cash flow. |
| | • | | Strategic acquisitions of VCON, NetStreams and MagicBox and their complementary video and network technologies fortified our flagship voice conferencing solutions,making ClearOne a player in the growing $5+ billion video communications market. |
| | • | | Early this year, ClearOne was awarded damages of $45 million related to auction rate securities sold to the company leaving us with approximately $24.4 million after legal fees and taxes. Soon after the award, the Board authorized the repurchase of up to $10 million of ClearOne stock, and we have repurchased $2.8 million so far. This is only the latest in repurchases—since our NASDAQ relisting in 2006, we have repurchased nearly $20 million or about 30 percent of ClearOne outstanding stock. |
We have the right strategy to continue this momentum:
We are evaluating options to invest to grow our share price and revenue while expanding our footprint in the audio visual industry through strategic acquisitions and internal investments. With our current cash position, a debt-free balance sheet and a demonstrated ability to generate growth, we believe our focused and prudent strategy will drive additional growth and wealth for all stakeholders.
Our current strategy is working thanks to the support of ClearOne’s management team, employees, board of directors and shareholders. To continue implementing this strategy, it is critical that we have the ongoing support of our fellow shareholders. The time isNOW to voteFOR management’s recommendations andFORClearOne’s continued growth. I urge you tovote FOR the Board’s recommendations on your proxy to maintain our growth and preserve your power as a shareholder.
I am also pleased to report that the largest and most influential proxy advisory service –Institutional Shareholder Services (ISS) – has endorsed the Board’s proposals on every issue we consider key to the future of the company.
Please vote today. The deadline to vote for the future of your company is less than fifteen days away. Exercise your right to vote. You are important regardless of the number of shares you own. Do not delay.
You are invited to attend our Annual Meeting, scheduled to be held at ClearOne’s corporate offices on December 3, 2013 at 9 a.m. local time. Our offices are located at 5225 Wiley Post Way, Suite 500, Salt Lake City, Utah 84116.
Sincerely,
Zee Hakimoglu
Chairman, President and Chief Executive Officer
ClearOne, Inc.
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CLRO Trades on NASDAQ August 2007-Present SEC Investigation January 2003-July 2006 November 2008 ClearOne awarded $10.5M in punitive and compensatory damages in trade secret case August 2008 Tender offer to repurchase up to 20% shares outstanding May 2008 ClearOne adds $1M to stock buy-back September 2007 ClearOne announces $3.6M stock buy-back August 2007 CLRO begins trading on NASDAQ January 2007 Zee Hakimoglu named Audio Conference CEO of the Year August 2006 Board authorizes $2M stock buy-back August 2006 Shares begin trading on OTC Bulletin Board April 2013 ClearOne recoups ~$500K in legal expenses February 2012 ClearOne acquires VCON October 2012 Zee Hakimoglu wins Women in AV Award May 2012 Board authorizes $2M stock buy-back Delisted from NASDAQ April 2003-August 2007 January 2003 SEC files complaint against ClearOne January 2003 ClearOne delays earnings as it assesses SEC allegations; CEO and CFO relieved of duties January 2003 U.S. Attorney’s Office for the District of Utah begins criminal investigation stemming from the SEC complaint January 2003 NASDAQ halts trading, requests information from ClearOne December 2003 ClearOne settles SEC and class action proceedings; pays $5M and $1.2M in shares to former shareholders; pays no fine to the SEC April 2003 CLRO delisted from NASDAQ August 2005 ClearOne restates consolidated financial statements A Decade of Progress July 2007 Zee Hakimoglu named Chairman of ClearOne November 2009 ClearOne acquires NetStreams July 2009 Narsi Narayanan appointed VP, Finance July 2004 Zee Hakimoglu appointed CEO July 2009 ClearOne named one of America’s fastest growing small public companies by Fortune Small Business magazine July 2011 CLRO added to Russell Microcap® Index August 2011 Court of Appeals affirms ClearOne $11.7M award in trade secrets case September 2011 ClearOne acquires MagicBox February 2013 Board approves increase of stock buy- back to $10M January 2013 ClearOne receives $45M auction-rate securities settlement July 2006 SEC terminates ClearOne investigation May 2006 Zee Hakimoglu named to Board Company event Stock buy-back Acquisition November 18, 2013 |
