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Zoom Technologies Provides 3Q Numbers
(Wireless News Via Acquire Media NewsEdge)
Zoom Technologies, a manufacturer of modems and other communication
products, reported results for its third quarter ended September 30.
In a release, the company stated:
- Net sales of $3.9 million for its third quarter ended September 30,
down 30.4 percent from $5.6 million for the third quarter of 2007.
- Zoom reported a net loss of $1.0 million or $0.53 per share for Q3
2008 compared to a net loss of $0.6 million or $0.33 per share for Q3
2007.
- Gross profit was $0.7 million or 19.3 percent of net sales in Q3
2008, down from $1.3 million or 23.2 percent of net sales in Q3 2007.
The decrease in gross profit was primarily due to the reduction in
sales, primarily outside the US, partially offset by a decrease in
variable manufacturing cost.
- Operating expense was $1.8 million or 46.0 percent of net sales in Q3
2008 versus $2.0 million or 36.4 percent of net sales in Q3 2007.
Operating expense in Q3 2008 was lower than Q3 2007 primarily due to
lower variable selling expense.
- Zoom reported net sales of $11.5 million for first the nine months of
2008 compared to $14.7 million for the first nine months of 2007, a
reduction of 21.5 percent. Gross profit was $2.4 million or 20.7
percent of net sales for the nine months of 2008, down from $2.9
million or 19.6 percent of net sales for the nine months of 2007.
Operating expense was $5.4 million or 46.8 percent of net sales for the
nine months of 2008 versus $6.0 million or 41.1 percent on net sales
for the nine months of 2007. Other income for the first nine months of
2007 compared to the first nine months of 2008 dropped by $0.2 million
due to reduced interest income and increased foreign exchange loss. The
net loss for the first nine months of both 2008 and 2007 was $2.7
million, as the reduction in operating expense offset the reduction of
gross profit plus other income.
- Zoom's cash balance on September 30, was $2.1 million, down from $3.6
million on December 31, 2007. This cash reduction of $1.5 million was
primarily due to Zoom's loss of $2.7 million in the nine-month period,
a $0.2 million reduction in accounts payable and accrued expense, and a
$0.3 million investment in RedMoon, partially offset by a $1.4 million
decrease in inventory and a $0.4 million decrease in accounts
receivable. Zoom's current ratio was 3.1 on September 30. Zoom has no
long-term debt.
"During the quarter our North American sales were down 13 percent,
while sales in other markets were down a very disappointing 55
percent," said Frank Manning, Zoom's President and CEO. "Zoom's second
largest market, the UK, generates revenues in British pounds; and the
pound's drop of 11 percent, as measured in US dollars, added about $0.1
million to Zoom's loss for Q3 2008. Zoom did not lose significant
customers during the quarter, but we are experiencing disappointing
sales with one big customer in the UK and with some of our
international distributors. These challenges are exacerbated by the
strength of the US dollar, which tends to reduce our revenues and
margins. We hope that new product introductions during Q4 2008,
including new Global Village services and our new ADSL wireless-G
router with built-in VoIP, will be successful. Meanwhile Zoom continues
to try to cut costs and to explore strategic alternatives."
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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