They said they are keeping there operations in FL. I'm thinking they will keep as is, and that the main reason for the acquisition is to insure future supply of products.
Since Sabine was private, we don't know what the financials are, other than the debt they will be paying off.
"Acquisition of Sabine, Inc. secures continued access to product central to ClearOne's growth strategy"
Maybe they were worried some competitor would buy them and they'd lose access to the technology. Not a bad move.
CLRO announced the acquisition of Sabine, solidifying co's industry-leading portfolio of professional microphones.
•With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne's complete microphone portfolio.
•Under the terms of the transaction, ClearOne will pay approximately $7.5 million in cash and $1.5 million in ClearOne shares.
•In addition, ClearOne will assume and pay off Sabine debt of $1.25 million and make earn-out payments over the next three years, based on achievement of certain performance criteria.
•Sabine has partnered successfully with ClearOne since late 2012, supplying the wireless microphone systems sold under the ClearOne brand.
Heard back from Narsi. Said the drop was due to the Stock Buyback during Q4. Prior to that they had reduced Add'l Paid In Capital. Wasn't sure you could do that, but he's the professional. Said it should be more clear when the 10K is released.
In looking at the yearend Balance Sheet, there was a drop in the Retained Earnings from Q3 of $675K, when it should have gone up by $1.741 million. I sent an email to IR last week, but have not heard back. The only reason there would be a drop is if they reported a loss for the quarter (which they didn't), or they pay a dividend.
Can someone clarify this?
Nice analysis Lone Ranger. By my calculations the Non-STEC backlog has grown 16% and 26% the past two quarters.
Revenues: $14.1 million
Net Income: $1.8 million
EPS Basic: $.20
EPS Diluted: $.19
If they were to do a Goodwill / Intangible Asset Write-down, this would be the quarter. At the end of Q3, these together totaled $7.3 million. Don't think we will though.