Slide 1: Safe-Harbor Statement – 1 of 2
Safe-HarborStatement–1of2 Thispresentationincludes“forward-lookingstatements”withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”).Allstatementsinthisreport,otherthanstatementsofhistoricalfact,areforward-lookingstatem
Slide 2: Safe-Harbor Statement – 2 of 2
Safe-HarborStatement–2of2 This communication is not an offer to sell or a solicitation of offers to purchase any securities. This communication has not been approved or disapproved by the U.S. Securities and Exchange Commission (the "SEC") or the securities regulatory authority of any state, nor has
Slide 3: Broad Portfolio of A/V Conferencing and Collaboration Solutions
Broad Portfolio of A/V Conferencing and Collaboration Solutions ClearOne provides a complete suite of pro audio and video conferencing products and collaboration solutions for traditional offices and home offices.
Slide 4: Distinguished by Quality and Innovation
Distinguished by Quality and Innovation • Our products’ high audio quality and superior audio-visual streaming performance serve as key competitive advantages, driven by proprietary, highly advanced audio signal processing and networking technologies • We believe the following principal factors driv
Slide 5: Our advantages against larger competitors
Our advantages against larger competitors • Proprietary technology with 80+ patents. • Pioneer in the installed audio conferencing market and a trend-setter with new inventions. • Four decades of experience – one of the oldest in the industry. • Strong brand recognition in the Pro AV channel.• Led b
Slide 6: Addressable Market Opportunity For ClearOne
Addressable Market Opportunity For ClearOne
Slide 7: Innovation Enables a Superior Meeting Experience
Innovation Enables a Superior Meeting Experience With over 80 patents and patents pending, ClearOne’s innovative collaboration technology plays a pivotal role in achieving business productivity and operational goals at the office and at home.
Slide 8: Spans Across Organizations and Workspaces
Spans Across Organizations and Workspaces Complete suite of advanced audio and video conferencing solutions for high-performance professionals across multiple industries and verticals for WFO and WFH.
Slide 9: Sample of Our Blue-Chip Customers
Sample of Our Blue-Chip Customers
Slide 10: Audio Conferencing and Voice Lift
Audio Conferencing and Voice Lift
Slide 11: New Audio Products
New Audio Products The BMA 360D with Dante® audio is a microphone array ceiling tile that incorporates the world’s most advanced technology and works with any Dante-enabled DSP mixer. Choose any DSP mixer that has Dante audio and the BMA 360D pairs perfectly and delivers unrivaled audio performance.
Slide 12: New Audio Products
ClearOne. Nasdaq: CLRO New Audio Products BMA 360D ‘The BMA 360D with Dante® audio is a microphone array ceiling tile that incorporates the world's most advanced technology and works with any Dante-enabled DSP mixer. Choose any DSP mixer that has Dante audio and the BMA 360D pairs perfectly and deli
Slide 13: New Video Products
New Video Products • 120-degree field of view • Electronic Pan-Tilt-Zoom • AI-based smart face or voice tracking UNITE 60 4K Camera Unite 260 Pro Camera Nasdaq: CLRO UNITE 160 4K Camera • Mechanical Pan-Tilt-Zoom • 12x optical zoom • AI-based auto framing and smart face tracking • Mechanical Pan-Til
Slide 14: Channel Sales Model
Channel Sales Model Consultants Pro AV VARS IT VARS End Customers AV Distributors IT Distributors Nasdaq: CLRO
Slide 15: Financial Summary – Revenue
Financial Summary – Revenue ($ in 000s, except margin amounts) 0% 10% 20% 30% 40% 50% $ $3,000 $6,000 $9,000 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Quarterly Revenue and Gross Margin Revenue Gross Margin • Revenue performance expected to improve in 2H23 as the Company works to mitigate rece
Slide 16: Revenue History
Revenue History ($ in 000s, except margin amounts) Growth phase Nasdaq: CLRO $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Litigation
Slide 17: Near-Term Revenue Growth Drivers
Near-Term Revenue Growth Drivers Annual Revenue Goal -$40 million • Resolve manufacturing issues with contract manufacturer. (Expected mid Q3 2023) • Start shipping beamforming microphone solutions (Dante) to interoperate with most DSPs in the market. This is expected to increase available market 4x
Slide 18: Mid-Term Revenue Growth Drivers
Mid-Term Revenue Growth Drivers Annual Revenue Goal -$60 million • New generation of DSPs. • Solutions tailor-made for remote workforce. • Introduce sound reinforcement and audio distribution technologies leveraging and augmenting ClearOne’s existing technology. • Additional AI-based audio and video
Slide 19: Long-Term Revenue Growth Drivers
Long-Term Revenue Growth Drivers Annual Revenue Goal -$100 million • System-level AI integration enabling video and audio components to work together to provide the best camera angles and best audio. • Cloud-based DSP. • Specialized solutions incorporating ClearOne cloud-based audio, video, storage,
Slide 20: Long-Term Revenue Growth Drivers
Long-Term Revenue Growth Drivers ClearOne. Nasdaq: CLRO Annual Revenue Goal - $100 million System-level Al integration enabling video and audio components to work together to provide the best camera angles and best audio. Cloud-based DSP. Specialized solutions incorporating ClearOne cloud-based audi
Slide 21: Balance Sheet
Balance Sheet ($ in 000s, except margin amounts) • May 31, 2023 - $29.0 million special dividend paid. • Current cash on hand - $20.0 million (approx.) Nasdaq: CLRO Mar 31, 2023 Dec 31, 2022 Assets Cash on hand 59,006 984 $55 million settlement received. Accounts receivable 3,541 58,603 Inventories
Slide 22: Corporate Focus
Corporate Focus Innovation 6 new products introduced in the last 12 months 84 issued patents with additional applications pending Cost Savings Non-GAAP OPEX reduced by 24% YoY (2022 vs 2021) Manufacturing Transition and Ramp Transitioned most manufacturing from China to Singapore to facilitate sales
Slide 23: Investment Rationale
Investment Rationale • ClearOne’s strong balance sheet, especially our cash position after paying the special dividend, provides us the necessary ramp to launch new products, build strong teams, and compete effectively in the market. • ClearOne has strong underlying assets including intellectual pro
Slide 24: Investment Rationale
ClearOne. Nasdaq: CLRO Investment Rationale + ClearOne's strong balance sheet, especially our cash position after paying the special dividend, provides us the necessary ramp to launch new products, build strong teams, and compete effectively in the market. + ClearOne has strong underlying assets inc
Slide 25: Settlement of IP Litigation
Settlement of IP Litigation • On December 9, 2022, we entered into a confidential settlement and license agreement with Shure. • Under the terms of this agreement, both parties dismissed with prejudice all the litigations between the parties and released all claims against each other in connection w
Slide 26: ClearOne Executive Team – Bios
ClearOne Executive Team – Bios Derek Graham, CEO Joined ClearOne in July 2003. Promoted through the R&D organization. Inventor on 13 patents. Earned a BS in EE, with highest honors, and a Master’s Degree in EE from the Georgia Institute of Technology. Named Interim CEO in May 2022 and permanent CEO
Slide 27: ClearOne Executive Team – Bios
ClearOne Executive Team – Bios Jim Mergens, VP Sales - Americas Joined C1 August 2023. Promoted through the Sales organization. Inducted into the inaugural InfoComm 100 industries most influential individuals. He holds a CTS & multiple industry certifications. 43 years of industry experience. Grifit
Slide 28: Financial summary – Income statement summary
Financial summary – Income statement summary ($ in 000, except per share) 2023-Q12022-Q42022-Q32022-Q2Last 4 Qtrs2022-Q12021-Q42021-Q32021-Q2Qtrs 5 to 8Change%GAAPRevenue4,178 4,021 6,264 7,375 21,838 7,545 7,202 6,992 7,735 29,474 (26) COGS2,863 2,757 3,694 4,568 13,882 4,729 4,564 4,141 4,311 17,7
Slide 29: Financial summary — Income statement summary
ClearOne. Nasdaq: CLRO Financial summary — Income statement summary (5 in 000,excop per share) ——— — — TV Ver ie iia) hase — a isis as ow ae nary Maat fae [ate] ooo) a snes aa timo aru tg ao aaa atte as daca, deen “xy “nang, Teen oe) — ey — “Si nn Gare (scat sy aval apen flown flash ag aoa) Maat) “e
Slide 30: Thank You For Your Time
investor Presentation —— GJearOne. Thank You For Your Time