BEIJING, Aug. 15, 2011 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. (Nasdaq:ZOOM), a leading China based manufacturer of mobile phones and related products, today reported financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Highlight:
- Revenue increased 34.3% over same quarter last year to $57.6 million.
- Proprietary brand phone sales in the second quarter of 2011 reached 207,443 units compared to 56,714 units sold in same quarter last year. In addition to these sales, another 50,700 units were sold in India.
- Revenues from sales of own brand products in the second quarter of 2011 were $14.9 million, an increase of 233% over the same quarter last year.
- Gross profit rose 28.4% over same quarter last year to $5.9 million.
- Net income, after incurring added R&D costs of approximately $1 million for new phones, decreased 26.5% to $1.5 million from same quarter last year.
Maintains Same Guidance for Full Year 2011:
- Revenue of $320 million to $340 million, up 27%-35% from 2010
- Net income of $16 million to $17 million, up 25%-33% from 2010
- Own brand phone sales of 1.4 million units
Our revenues were $57,564,265 for the quarter ended June 30, 2011, an increase of 34.3% or $14,687,392 as compared to $42,876,873 in the corresponding quarter last year. The increase was mainly due to the sales of our proprietary "Leimone" brand mobile phones. Our EMS revenue, other than own brand phone sales, for the second quarter of 2011 was $43.3 million or an increase of 12.8% from $38.4 million in the same period of 2010.
In the second quarter of 2011, we sold 207,443 units of our Leimone brand phones of which 158,751 were 3G models, total sales in Leimone phones were $13.8 million. Another 50,700 of our LongTel brand phones were sold to India and brought in sales of $1.2 million. Revenues from sales of our own branded products in the second quarter of 2011 were $14.9 million, representing an increase of 233% over $4.5 million for the same three-month period in 2010 where total units of Leimone brand phones sold were 56,714 of which 10,210 were 3G units.
Gross profit for the second quarter of 2011 was $5,881,890, an increase of 28.4% or $1,302,133 over $4,579,757 of the second quarter last year. Gross margin, the ratio of gross profit as a percentage of revenues was 10.2% in Q2 of 2011 compared to 10.7% for Q2 2010.
For the quarter ended June 30, 2011, after incurring added R&D costs of approximately $1 million for new phones to be released later this year, the Company's net income was $1,495,223, a decrease of $539,425 or 26.5% from $2,034,648 for the corresponding 2010 quarter. Net margins, the ratio of net income over revenues, for the second quarters of 2011 and 2010 were 2.6% and 4.7% respectively.
Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies, commented, "We are demonstrating our commitment to bringing advanced and innovative mobile phones to the markets under our proprietary brands. Our new series of stylish, tough and smart handsets shows the edge we have over the competition and we are excited about their release later this year internationally, including Asia, Europe and the United States."
Conference Call Details:
The company will host an investor call at 4:30 p.m. EDT (1:30 p.m. PDT) today. To access the conference call, dial +1-866-405-2350. Callers outside the U.S. and Canada should dial +65-6723-9388, then enter access code 91069761.
A replay of the conference call will be available for 20 days, through September 4, 2011. To access the replay, please dial +1-866-214-5335 and enter access code 91069761. Callers outside the U.S. and Canada should dial +61-2-8235-5000 and enter access code 91069761.
About Zoom Technologies
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 Manufacturing (OBM) under the Zoom and Leimone brand names. The Company's products are both exported and sold domestically in People's Republic of China.
The Zoom Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9665
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, intentions, plans, objectives, assumptions or future events in which the outcome 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 Zoom Technologies' 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.