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    Michael Kay

    Research Analyst at Kay Associates

    Michael Kay's questions to CLEARONE (CLRO) leadership

    Michael Kay's questions to CLEARONE (CLRO) leadership • Q3 2017

    Question

    Michael Kay of Kay Associates asked about the potential timeline for the ongoing litigation, the possibility of significant damages if successful, trends in international sales, and whether it would be prudent to curtail the buyback program given litigation expenses to protect the dividend.

    Answer

    CEO Zee Hakimoglu explained the litigation began in late 2016 and its timeline is partly dependent on the opposing side; if victorious, ClearOne would expect compensation for business loss. She also noted that while the competitors are larger, ClearOne has won against large firms before. VP of Finance Narsi Narayanan confirmed that international markets like India, the Middle East, and China remain important, contributing over 30% of revenue. Hakimoglu concluded that the board remains confident and will continue the buyback and dividend, feeling the company has sufficient cash.

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    Michael Kay's questions to CLEARONE (CLRO) leadership • Q3 2017

    Question

    Michael Kay asked for an update on the litigation timeline, the potential for significant damages if victorious, trends in international sales, and whether it would be prudent to curtail the buyback program to preserve cash for litigation and the dividend.

    Answer

    President and CEO Zeynep Hakimoglu explained the litigation began in late 2016 and its timeline is partly dependent on the opposing side, but she expects compensation for business loss if victorious. SVP of Finance Narsi Narayanan noted that international markets like India, the Middle East, and China remain important, consistently making up over 30% of revenue. Regarding capital allocation, Zeynep Hakimoglu affirmed the board's confidence and its decision to continue the buyback and dividend, stating the company has sufficient cash.

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    Michael Kay's questions to CLEARONE (CLRO) leadership • Q1 2017

    Question

    Michael Kay of Kay Associates questioned the rationale of using capital for share buybacks, asking if it would be more judicious for a growth company to prioritize strategic acquisitions to increase revenue and earnings instead.

    Answer

    President and CEO Zee Hakimoglu responded that the company seeks to balance both returning capital to shareholders and pursuing growth through acquisitions. She affirmed that ClearOne is always actively looking for strategic M&A opportunities but remains disciplined to avoid overpaying or acquiring companies with poor technology or cultural fit. She emphasized that the company's strong cash position and debt-free balance sheet allow it to execute its buyback program without hindering its ability to fund a valuable acquisition when the right opportunity arises.

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