SOURCE: Zoom Telephonics, Inc.

Zoom Telephonics, Inc.

August 01, 2012 16:15 ET

Zoom Telephonics Reports Results for the Second Quarter of 2012

BOSTON, MA--(Marketwire - Aug 1, 2012) - Zoom Telephonics, Inc. (OTCQB: ZMTP) (OTCBB: ZMTP), a leading manufacturer of modems and other communication products, today reported net sales of $3.8 million for the second quarter ended June 30, 2012, up 21.0% from $3.2 million for the second quarter of 2011. Zoom reported a net loss of $211 thousand or $0.03 per share for Q2 2012, compared to a net loss of $326 thousand or $0.06 per share for Q2 2011.

Gross profit was $920 thousand or 24.0% of net sales in Q2 2012, up from $749 thousand or 23.7% of net sales in Q2 2011. The increase in gross profit was primarily due to higher sales.

Operating expenses were $1.12 million or 29.3% of net sales in Q2 2012, down from $1.15 million or 36.2% of net sales in Q2 2011. Selling expenses decreased $81 thousand to $501 thousand from Q2 2011 to Q2 2012 due primarily to lower freight costs and lower advertising costs. G&A expenses increased $9 thousand to $299 thousand from Q2 2011 to Q2 2012. R&D expenses increased $47 thousand to $321 thousand from Q2 2011 to Q2 2012 due primarily to higher costs for cable modem certification and new product engineering.

Zoom's cash balance on June 30, 2012 was $63 thousand, down $581 thousand from December 31, 2011. Zoom's $0.5 million increase in accounts receivable and $0.3 million loss for the first half of 2012 decreased cash. Zoom's $0.5 million increase in bank debt increased cash as Zoom moved to minimize early-pay discounts and thereby increased the time to collect receivables. Zoom's current ratio was 2.9 on June 30, 2012.

"We are pleased with our sales growth and improved operating results, but disappointed that our low gross margin resulted in a net loss," said Frank Manning, Zoom's President and CEO. "Our sales growth came primarily from our lines of cable and ADSL modem products, and this hurt our gross margin percentage. We continue to try to improve gross margins for our existing products. We also continue to develop new products, including our coming ZoomGuard™ line of wireless sensors and controls."

Zoom has scheduled a conference call for Thursday, August 2 at 10:00 a.m. Eastern Time. You may access the conference call by dialing (866) 393-7958 and international callers may dial (706) 643-5255. The conference ID is 16538941. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, www.zoomtel.com/Q2, and to other financial and investor-oriented websites. Shortly after the conference call, a recording of the call will be available on Zoom's website. For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 753-0897, email investor@zoomtel.com, or visit Zoom's website at www.zoomtel.com

About Zoom Telephonics
Founded in 1977 in Boston, Zoom Telephonics, Inc. designs, produces, markets, and supports modems and other communication products under the Zoom, Hayes®, and Global Village® brands. For more information about Zoom and its products, please see www.zoomtel.com.

Forward-Looking Statements
This release contains forward-looking information relating to Zoom Telephonics' plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including: the potential need for additional funding which Zoom may be unable to obtain; declining demand for certain of Zoom's products; delays, unanticipated costs, interruptions or other uncertainties associated with Zoom's production and shipping; Zoom's reliance on several key outsourcing partners; uncertainty of key customers' plans and orders; Zoom's dependence on key employees; uncertainty of new product development and introduction, including budget overruns, project delays, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

 
ZOOM TELEPHONICS, INC.
Condensed Balance Sheets
In thousands
(Unaudited)
             
    6/30/12    12/31/11 
                 
ASSETS                
                 
Current assets:                
                 
  Cash   $ 63     $ 644  
  Marketable securities     83       82  
  Accounts receivable, net     1,897       1,399  
  Inventories     2,821       2,723  
  Prepaid expenses and other     162       186  
                 
    Total current assets     5,026       5,034  
                 
Property and equipment, net     28       20  
                 
    Total assets   $ 5,054     $ 5,054  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
                 
Current liabilities:                
  Bank debt   $ 526     $ --  
  Accounts payable     868       1,059  
  Accrued expenses     331       373  
                 
    Total current liabilities     1,725       1,432  
                 
    Total liabilities     1,725       1,432  
                 
Stockholders' equity:                
                 
  Common stock and additional paid-in capital     33,961       33,935  
  Accumulated other comprehensive income (loss)     361       356  
  Unrealized gain (loss) on securities     (230 )     (231 )
  Retained earnings (accumulated deficit)     (30,763 )     (30,438 )
                 
    Total stockholders' equity     3,329       3,622  
                 
    Total liabilities & stockholders' equity   $ 5,054     $ 5,054  
                 
                 
 
ZOOM TELEPHONICS, INC.
Condensed Statements of Operations
In thousands, except for per share data
(Unaudited)
 
    Three Months Ended   Six Months Ended
    6/30/12    6/30/11    6/30/12    6/30/11 
                                 
Net sales   $ 3,831     $ 3,166     $ 7,809     $ 5,974  
Cost of goods sold     2,911       2,417       5,900       4,417  
                                 
  Gross profit     920       749       1,909       1,557  
                                 
Operating expenses:                                
  Selling     501       582       1,027       1,119  
  General and administrative     299       290       614       607  
  Research and development     321       274       582       512  
    Total operating expenses     1,121       1,146       2,223       2,238  
                                 
  Operating profit (loss)     (201 )     (397 )     (314 )     (681 )
                                 
Other income (expense), net     (9 )     72       (9 )     71  
                                 
  Income (loss) before income taxes     (210 )     (325 )     (323 )     (610 )
                                 
Income tax expense (benefit)     1       1       2       1  
                                 
  Net income (loss)   $ (211 )   $ (326 )   $ (325 )   $ (611 )
                                 
Earnings (loss) per share:                                
  Basic Earnings (loss) per share   $ (0.03 )   $ (0.06 )   $ (0.05 )   $ (0.11 )
  Diluted Earnings (loss) per share   $ (0.03 )   $ (0.06 )   $ (0.05 )   $ (0.11 )
                                 
                                 
Weighted average number of shares outstanding:                                
                                 
  Basic     6,974       5,451       6,974       5,451  
  Diluted     6,974       5,451       6,974       5,451  
                                 
                                 
                                 

Contact Information

  • For additional information, please contact:
    Investor Relations
    Zoom Telephonics
    207 South Street
    Boston, MA 02111
    telephone: (617) 753-0897
    email: investor@zoomtel.com
    www.zoomtel.com