Science & Technology
Science and Technology
Science and Technology
Fri, May 7, 2010
Thu, May 6, 2010 Zoom Telephonics Reports Results for the First Quarter of 2010
BOSTON, MA--(Marketwire - May 6, 2010) - Zoom Telephonics, Inc. (
Gross profit was $0.8 million or 30.6% of net sales in Q1 2010, up from $0.5 million or 19.4% of net sales in Q1 2009. The increase in gross profit was primarily due to a shift in sales toward Zoom's higher margin products and reductions in Zoom's manufacturing overhead cost.
Operating expenses were $1.1 million or 45.1% of net sales in Q1 2010 versus $1.4 million or 61.7% of net sales in Q1 2009. Operating expenses in Q1 2010 were lower than Q1 2009 primarily due to lower personnel costs and lower merger-related expenses.
Zoom's cash balance on March 31, 2010 was $1.2 million, down $22 thousand from December 31, 2009. Zoom's $0.3 million loss and $0.1 million increase in inventory decreased cash, and Zoom's $0.2 million decrease in accounts receivable and $0.1 million increase in accounts payable and accrued expenses increased cash. Zoom's current ratio was 2.7 on March 31, 2010. Zoom has no long-term debt.
"We are pleased to be reporting better results due to higher sales, improved gross margin, and lower expenses," said Frank Manning, Zoom's President and CEO. "We will continue to try to drive down our costs, though this is challenging given the new product goals we've set for ourselves. Even more important than expense reduction is growth of our sales through existing products and new products. Soon Zoom expects to begin shipping a new generation of cable modems and ADSL modems, and we are excited by the prospects for these products. We have other innovative products that we plan to announce soon, and overall this is a very active time for new product introductions by Zoom. We are proud of our team and our reseller partners, and are cautiously optimistic about our prospects."
Zoom has scheduled a conference call for Friday, May 7 at 10:00 a.m. Eastern Time. You may access the conference call by dialing (866) 393-7958. The conference ID is 73485294. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, [ www.zoom.com/Q1 ], and to other financial and investor-oriented websites. Shortly after the conference call, a recording of the call will be available on Zoom's website. For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 753-0897, email [ investor@zoom.net ], or visit Zoom's website at [ www.zoom.com ].
About Zoom Telephonics
Zoom Telephonics, Inc. designs, produces, markets, and supports communication products under the Zoom, Hayes®, and Global Village® brands. Zoom is headquartered in Boston, and its European sales and support center is in the UK. Zoom markets its products in over forty countries, and provides multi-lingual support from its offices in Boston and the UK. For more information about Zoom Telephonics and its products, please see [ www.zoom.com ].
Forward Looking Statements
This release contains forward-looking information relating to Zoom Telephonics' plans, expectations, and intentions, including statements relating to Zoom's new products and investments. Actual results may be materially different from expectations as a result of known and unknown risks, including: the need for additional funding which Zoom may be unable to obtain; Zoom's ability to continue as a going concern; declining demand for certain of Zoom's products; Zoom's reliance on limited number of customers for sale of its products; fluctuations in the foreign currency exchange rate in relation to the U.S. dollar; delays, unanticipated costs, interruptions or other uncertainties associated with Zoom's production and shipping capabilities in Mexico; Zoom's reliance on an outsourcing partner to conduct production operations in Mexico; Zoom's dependence on key employees; the uncertainty of future demand from any specific customer or for all of Zoom's customers as a group; the uncertainty of the regulatory environment for Zoom's products; uncertainty of new product development and introduction, including budget overruns, project delays, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; Zoom's dependence on one or a limited number of suppliers for certain key components; rapid technological change; competition; factors affecting Zoom's liquidity; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.
ZOOM TELEPHONICS, INC. Condensed Balance Sheets In thousands (Unaudited) 03/31/10 12/31/09 --------- --------- ASSETS Current assets: Cash $ 1,202 $ 1,224 Accounts receivable, net 960 1,199 Inventories 1,715 1,586 Prepaid expenses and other 197 224 --------- --------- Total current assets 4,074 4,233 Property and equipment, net 50 58 Deferred other receivable 161 166 --------- --------- Total assets $ 4,285 $ 4,457 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,114 $ 1,015 Accrued expenses 380 375 Total current liabilities 1,494 1,390 --------- --------- Total liabilities 1,494 1,390 --------- --------- Stockholders' equity: Common stock and additional paid-in capital 32,574 32,541 Accumulated other comprehensive income (loss) 352 363 Retained earnings (accumulated deficit) (30,135) (29,837) --------- --------- Total stockholders' equity 2,791 3,067 --------- --------- Total liabilities & stockholders' equity $ 4,285 $ 4,457 ========= ========= ZOOM TELEPHONICS, INC. Condensed Statements of Operations In thousands, except for per share data (Unaudited) Three Months Ended 3/31/10 3/31/09 --------- --------- Net sales $ 2,494 $ 2,348 Cost of goods sold 1,731 1,892 --------- --------- Gross profit 763 456 Operating expenses: Selling 448 487 General and administrative 373 598 Research and development 305 363 --------- --------- Total operating expenses 1,126 1,448 Operating profit (loss) (363) (992) Total other income (expense), net 65 47 --------- --------- Income (loss) before income taxes (298) (945) Income tax expense (benefit) - - --------- --------- Net income (loss) $ (298) $ (945) --------- --------- Basic and diluted earnings (loss) per share: Earnings (loss) per share $ (0.15) $ (0.49) --------- --------- Weighted average number of shares outstanding: Basic and diluted 1,981 1,931
Zoom Telephonics' common stock was not publicly traded prior to the September 22, 2009 Spin-Off of Zoom Telephonics from its then parent Zoom Technologies. For comparability purposes, the calculation of weighted average common shares outstanding shown above for the quarter ended March 31, 2009 includes the common shares of Zoom Technologies outstanding for all periods prior to September 22, 2009.
