Minim Inc (MINM)

[razorback74]

The quarterly is out and we've swung to a profit.

Press Release Source: Zoom Telephonics, Inc. On Wednesday November 3, 2010, 4:00 pm EDT
BOSTON, MA--(Marketwire - 11/03/10) - Zoom Telephonics, Inc. (OTC.BB:ZMTP - News), a leading producer of modems and other communication products, today released financials for the third quarter ended September 30, 2010 ("Q3 2010") reporting an operating profit of $281,000 for Q3 2010 as compared to an operating loss of $868,000 for Q3 2009, as net sales, gross profit, gross margin, and operating expenses all improved. Zoom's net sales in Q3 2010 were $4.2 million, up 67% from Q3 2009 and up 21% from Q2 2010, due primarily to strong sales of 56K modems, cable modems, and mobile broadband products in Q3 2010.

Zoom's net sales of $10.2 million for the first 3 quarters of 2010 were up 29% from net sales for the first 3 quarters of 2009, and Zoom's net loss improved from $2.2 million for the first 9 months of 2009 to $0.2 million for the first 9 months of 2010 as gross profit, gross margin, and operating expenses all improved.

Gross profit was $1.4 million or 33.0% of net sales in Q3 2010, up from a gross profit of $0.7 million or 26.2% of net sales in Q3 2009. The gross profit improvement was primarily due to higher sales in Q3 2010, and was offset by increased incoming freight costs of $194 thousand. The improved gross profit percentage in Q3 2010 was primarily due to higher sales, which lowered production overhead as a percentage of sales, and was also due to lower personnel and rent costs in Q3 2010.

Operating expenses were $1.1 million or 26.4% of net sales in Q3 2010, down from $1.5 million or 60.5% of net sales in Q3 2009. This improvement for Q3 2010 was primarily due to lower general and administrative costs for Q3 2010, as professional fees in Q3 2009 for an October 2009 merger/spinoff were minimal in 2010, and as Zoom's personnel costs and rent were significantly lower for Q3 2010.

Zoom's cash balance on September 30, 2010 was $0.4 million, down from $1.2 million on December 31, 2009. Decreases in cash were primarily due to an inventory increase of $0.7 million and a receivables increase of $0.5 million, partially offset by an increase in accounts payable and accrued expenses of $0.5 million. Zoom's current ratio was 2.4 on September 30, 2010. Zoom has no long-term debt.

"We are pleased to be reporting significant net income for our most recent quarter, and substantially higher net sales for that quarter and the first 9 months of this year," said Frank Manning, Zoom's President and CEO. "This is primarily the result of hard work and excellent execution by our Zoom personnel, and significant growth in our 56K modem, cable modem, and mobile broadband revenues. During Q4 we will be introducing two new wireless keyboards, strengthening our DSL product line, and introducing two exciting mobile broadband products. During Q4 we also hope to complete our previously announced rights offering, with the goal of strengthening our balance sheet and providing additional operating flexibility."

Zoom has scheduled a conference call for Thursday, November 4 at 10:00 a.m. Eastern Time. You may access the conference call by dialing [phone]. The conference ID is 23238105. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, Zoom Telephonics: Financial Results Special Note, 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 Technologies, 207 South Street, Boston, MA 02111, telephone [phone], email [e-mail], or visit Zoom's website at Zoom Telephonics: Cable, ADSL, 3G & 56K Modems; ZDTV, Hayes modems, WiFi, Bluetooth, Wireless Routers, VoIP, & Dialers.