Zoom Technologies Inc. (ZTNO)

[califax]

Zoom Technologies Reports First Quarter 2010, Results Exceed Revenue and Net Income Guidance

Date : 05/12/2010 @ 8:00AM
Source : MarketWire
Stock : Zoom Technologies (ZOOM)

http://ih.advfn.com/p.php?pid=nmona&article=42781195

BEIJING -- (Marketwire)
05/12/10
Zoom Technologies, Inc. (NASDAQ: ZOOM)

Quarterly Highlights:

-- Net revenue increased 77% year over year to $50.98 million

-- Net income grew 113% over last year to $1.90 million

-- Sold $4.63 million of proprietary LEIMONE brand phones

Guidance:

-- Second Quarter 2010 net revenue between $56 and $62 million

-- Second Quarter 2010 net income between $1.8 and $2.2 million

-- Increased full year 2010 net revenue guidance between $250 and

$270 million

-- Increased full year 2010 net income guidance between $11.5 and

$12.5 million

Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading

China-based manufacturer of mobile phones and other mobile electronic

products, reported financial results for the first quarter ended March 31,

2010.

Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies,

commented, "Our first quarter results exceeded our expectations and reflect

the success of our business plans in the dynamic mobile phone industry in

China. We reported another quarter of tremendous year over year revenue

growth and are encouraged to start 2010 with a sequentially higher net

income then in the historically strongest fourth quarter. Our strong

position in the momentous and growing Chinese cell phone manufacturing

market and the success of our own brand LEIMONE phones led to this exciting

financial performance which we expect to continue going forward."

For the first quarter of 2010, Zoom reported net revenue of $50.98 million,

up 77% over $28.82 million for the first quarter 2009. Against the

seasonally slower first quarter, sales for the 2010 first quarter came in

stronger than expected. The year over year revenue growth was primarily

due to an increase in orders from domestic EMS customers and an increase in

sales of Zoom's own branded LEIMONE phones. Net income for the first

quarter ended March 31, 2010 was $1.90 million compared to net income of

$0.89 million for the first quarter of 2009, and even surpassing the $1.89

million in the fourth quarter of 2009, which is historically our strongest

quarter.

Gross profit for the first quarter 2010 was $4.18 million, up 56% from

$2.68 million for the first quarter 2009 and up 62% from the fourth quarter

2009. Gross margin for the first quarter of 2010 was 8.2%, up from 6.0%

for the full year 2009. The increase in gross margins for the first

quarter 2010 compared to the full year 2009 is partially due to sales of

Zoom's own brand phones which carry higher margins. Net margin for the

first quarter 2010 was 3.7%, an increase from 3.2% in the first quarter of

2009.

Mr. Gu continued, "We are also delighted to have recently executed a share

exchange agreement with Nollec Wireless Company which we expect to close by

the end of May 2010. Nollec Wireless is capable of designing in any and all

mobile phone platforms, and has experience in global launches and delivery

of phone models. The acquisition of Nollec Wireless will strengthen Zoom's

position in the mobile phone business due to Nollec's strong R&D background

in all aspects of mobile phone design such as chipsets, electronic hardware

design, application software development, mechanical design and system

design. We are extremely excited that Nollec can contribute to develop new

and more technologically advanced LEIMONE mobile phones including the

Android OS phone expected to be released in the third quarter 2010."

Looking ahead, Mr. Gu remarked, "We will continue to focus on our mobile

manufacturing business in 2010, as the market opportunity in China is in

high demand and we are ready to take advantage of the foreseeable growth in

China's mobile market. For the second quarter 2010, we expect net revenue

to be between $56 and $62 million and net income is expected to in the

range of $1.8 and $2.2 million. For the full year 2010, we are upwardly

revising our guidance and now expect net revenue to be between $250 and

$270 million and net income between $11.5 million to $12.5 million. We

previously guided full year 2010 net revenue to be between $240 and $260

million, and net income to be between $10.5 and $11.5 million."

Conference Call Details

A conference call to review the results will begin at 9:00 a.m. US Eastern

Time on May 12 (9:00 p.m. Beijing Time). The dial-in numbers are +

1-877-407-0789 for US domestic callers and + 1-201-689-8562 for

international callers. A telephonic replay of the call will be available

through May 26, 2010. The replay dial-in numbers are + 1-877-660-6853 for

US domestic callers and + 1-201-612-7415 for international callers. The

account number to access the replay is 3055 and the conference ID number is

350350.

About Zoom Technologies, Inc.

Zoom Technologies is a holding company with subsidiaries that engage in the

manufacturing, research and development, and sale of electronic and

telecommunication products for 3rd generation mobile phones, wireless

communication circuitry, and related software products. Zoom Technologies'

subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which

offers highly customized and high quality Electronic Manufacturing Service

(EMS) for Original Equipment Manufacturer (OEM) customers as well as its

own brand under the brand name of Leimone. The company's products are both

exported and sold domestically. For more information about Zoom

Technologies please visit Zoom's corporate website at

http://www.zoomleimone.com.

Forward-Looking Statements

Certain statements in this press release may constitute "forward looking

statements" that involve risks and uncertainties. These include statements

about our expectations, plans, objectives, assumptions or future events,

including our expansion in other 3G enabled mobile phones and the

acquisition of Leimone Culture, which may require shareholder approval that

cannot be assured. You should not place undue reliance on these

forward-looking statements. Information concerning factors that could cause

our actual results to differ materially from these forward-looking

statements can be found in our periodic reports filed with the Securities

and Exchange Commission. We undertake no obligation to publicly release

revisions to these forward-looking statements to reflect future events or

circumstances or reflect the occurrence of unanticipated events.

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