1st Quarter 2010 Financials released!!
It looks like things continue to improve as I had hoped and assumed. Here are some of the 1st quarter highlights.
Rev 2.5 million, which is a 6.2% increase over the same period last year. To put that into perspective. Over the past 4 1st quarters, the net sales drop has been (34.4%), (24.7%), (10%), and (18%). So I like that the company may be turning a corner when it comes to Revenue.
Net Income was a $300,000 net loss, which was down from $900,000 in the 1st quarter of 2009. It was also down from the $600,000 loss in the 4th quarter of 2009. I think they will see the black within the next couple quarters, IMO. In previous 1st quarters, the next losses were over $1million..
Cash on hand only went down $22,000, even with the $300,000 loss which is another good sign. They show that they know how to handle to the cash that they have, which is still at $1.2 million..
Gross profit was $800,000 compared to $500,000 in the 1st quarter last year. That's an increase of 60%. You'll also notice that they must have been able to cut over $300,000 in expenses, since the net loss difference is $600,000 and not just the $300,000 for the gross profit difference.
Some other things I like was that the company has several new products coming to market soon. So the potential for greater sales growth looks good. Here is a quote from Frank Manning, CEO
"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 have 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."
My overall Opinion of the company is good and am excited for the coming months to see how the financials shape up for the whole year.
Not sure if this slow turn around will have much impact on the stock price, but in time, I believe it will.
