Zoom Technologies Inc. (ZTNO)

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Zoom Technologies Expects Preliminary Third Quarter 2010 Results to Exceed Previous Guidance

Date : 10/18/2010 @ 7:00AM
Source : MarketWire
Stock : Zoom Technologies (ZOOM)

http://ih.advfn.com/p.php?pid=nmona&article=44824149&symbol=ZOOM

Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China-based manufacturer of mobile phones and other mobile electronic products, today announced preliminary results for the third quarter ended September 30, 2010 that are expected to exceed previous guidance.

Zoom expects to report net revenue in the range of $68 million to $71 million for the third quarter of 2010, which represents a sequential increase of approximately 59 percent to 66 percent from the net revenue of $42.9 million for the second quarter of 2010. This updated expected net revenue is higher than the previous guidance of $55 million to $61 million.

The Company anticipates reporting net income in the range of $3.3 million to $3.5 million for the third quarter of 2010, a sequential increase of approximately 63 percent to 72 percent from the net income of $2.03 million in the second quarter of 2010. This is higher than the previous guidance of $2.7 million to $3.3 million.

Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies, commented, "Our third quarter preliminary results exceeded our expectations and reflects our momentum and success in the dynamic mobile phone industry in China. We are proud of our continued expansion in the rapidly growing China 3G market and our partnerships with top tier Chinese mobile phone carriers. Contributing to our overall strong revenue results was the continued success of our LEIMONE brand phones, which captured $14 million in revenue in the third quarter. We sold 232,000 units of our LEIMONE brand mobile phones in this quarter, of which 27% were 3G units. We continue to gain market share with our branded phones and remain confident that the strength in our overall EMS business will bring further revenue growth in the remainder of 2010."

All figures in this press release remain subject to the completion of normal quarter-end accounting review procedures by Zoom's independent certified public accountants, which could result in changes to these preliminary figures.

The Company will provide more detail when it releases its financial results for the third quarter of 2010. Details on the earnings release date and conference call will be announced in the coming weeks.

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 the latest 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

This information and other statements by the Company in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, or other financial items; statements regarding future economic, industry or market conditions or performance; and preliminary financial results prior to the completion of the quarterly review by our independent certified public accountants. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "preliminary" and similar expressions. You should not place undue reliance on these forward-looking statements because actual performance or results could differ materially from that anticipated by these forward-looking statements, and such forward looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other 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 which are available to the public at www.sec.gov.