Decided to do some of my own dd. Most of this information has been taken off the 10-12G/A filing done by Zoom Technologies, for the coming(now realized) Zoom Telephonics. After reading through this filing, things are now making sense to me.
First off, Zoom Telephonics will take over all the communications businesses of Zoom Technologies. The reason for this is that Zoom Technologies bought a company "The Golden Lion". It was a Chinese based company. From what i've read, its business is different from what Zoom Tech, had been doing. So instead of having two different companies under the same umbrella, they spun-off the old business into Zoom Telephonics. In reading thru the financials of Zoom Technologies(which is now under Zoom Telephonics) I found these numbers.
For fiscal year 2008 the numbers looked like this
Revenue $14,458,803
COGS $11,467,187
Gross Profit $2,991,616
Operating profit(loss) ($3,600,943)
Total other Income(loss) net ($545,792)
Income(loss) before taxes ($4,146,735)
Income taxes(benefit) $12,919
Net Income(loss) ($4,159,654)
Those numbers are not great as you can see. Though there is Revenue coming in, the COGS is pretty high, and then the rest of profits eaten up by salaries and other business expenses. What I do like is the balance sheet
Total Current Assests $5,505,312
Total Assests $6,567,803
Total Liabilities $1,610,477
Total Stockholder's Equity $4,957,326
This shows that the stockholders do have some value. As of 2008, it was about $2.50 per share. Not bad. So if they can get the business back on track, this could really have some value. I think what has caused most of the losses is the company slowly changing over from Dial up Modems and getting more into Dsl, cable, and now wireless modems. I think this leads to much better potential for the company. Next let me show you some of the numbers for the first 6 months of 2009
Revenue 5,414,282
COGS 3,937,554
Gross Profit 1,476,728
Operating (loss) (1,366,493)
Total other income 37,819
Income(loss) before tax (1,328,674)
Income taxes(benefit) 295
Net Income(loss) (1,328,969)
One thing I'd like to point out is the COGS.. based on the percentage of revenue, it has gotten better since 2008. for 2008, COGS was 79.2% of revenue. So far in 2009, it is only 72.7% of revenue. Now on to the balance sheet For the first 6 months of 2009,
Total assests 5,416,252
Total Liabilities 1,559,343
total shareholder equity $3,856,909. Which is still nearly $2.00 per share.
Well this is a lot of info to absorb. I will stop for now.
