Zoom Technologies, Inc. (ZOOM) Reports Q2 2009 Financial Results of Recently Approved Acquisition
BOSTON, MA — (Marketwire) — 09/14/09 — Zoom Technologies, Inc. (NASDAQ: ZOOM)
Highlights:
-- Recently approved Zoom acquisition expected to close by end of September -- Gold Lion Q2 2009 revenue increased 354% to $53.1 million, versus $11.7 million in Q2 2008 -- Gold Lion Q2 2009 net income grew to $1.7 million, versus net loss of $0.1 million in Q2 2008 -- Gold Lion management's full year 2009 net revenue guidance in the range of $145 million to $155 million, versus $81 million in 2008 -- Gold Lion management's full year 2009 net income guidance in the range of $5.9 million to $6.1 million, versus $2.8 million in 2008
Zoom Technologies, Inc. (NASDAQ: ZOOM) today announced second quarter financial results of Gold Lion Holdings. Zoom shareholders approved the acquisition of Gold Lion, one of the top ten Chinese mobile phone manufacturers, on Tuesday, September 8, 2009. The acquisition is expected to close this month.
Gold Lion reported Q2 2009 revenues of $53.1 million, up 354% over $11.7 million for Q2 2008, and up 84% sequentially from $28.8 million for Q1 2009. Revenue growth was partially due to a significant order from one of Gold Lion’s existing customers, a major mobile communications original equipment manufacturer.
Gross profit for Q2 2009 rose 147% to $3.2 million, compared to $1.3 million for Q2 2008. Gross profit as a percentage of revenue for the second quarter of 2009 was 5.95%, compared to 10.95% for the same period of the prior year. The decline in gross margins is primarily due to low gross margin for the order mentioned above.
Total operating expenses for Q2 2009 were $0.4 million, compared to $0.6 million in Q2 2008. The decrease in expenses despite a jump in revenues was due primarily to management’s continued emphasis on cost control and production efficiencies.
Net income for Q2 2009 was $1.7 million. This compared to net loss of $0.1 million for the second quarter of 2008 and net income of $0.9 million in the first quarter of 2009.
Mr. Lei Gu, Chairman and Chief Executive Officer of Gold Lion, said, “We are most pleased to report these outstanding quarterly results following the recently announced and shareholder approved transaction with Zoom Technologies. We believe these results reflect the burgeoning mobile telecommunications business in China and our ability to drive revenues and profit in this market. The exceptional quarter includes revenue from an order placed by one of our top customers, which is also the top domestic mobile handset brand.”
Looking ahead, Mr. Gu commented, “For full year 2009, we expect total revenues to be between $145 million and $155 million and net income to be in the range of $5.9 million and $6.1 million.”
Mr. Frank Manning, the President, CEO, and Chairman of Zoom, said: “These results further demonstrate the value of the transaction we expect to close in September. The mobile phone market in China is growing rapidly, and we believe Gold Lion is well-positioned to benefit from this growth.”
About Gold Lion Holding Ltd.
Gold Lion is a holding company with subsidiaries that engage in the manufacturing, research and development, and sales of electronic and telecommunication products for 3rd generation mobile phones, wireless communication circuitry, and related software products. Gold Lion’s 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 and also designs and manufactures its own brand of mobile phones under the “Leimone” brand.
About Zoom Technologies, Inc.
Zoom Technologies, Inc. designs, produces, markets, and supports communication products under the Zoom, Hayes®, and Global Village® brands. Zoom is headquartered in Boston, and its European sales and support center is in the UK. Zoom markets its products in over forty countries, and provides multi-lingual support from its offices in Boston and the UK. For more information about Zoom and its products, please see www.zoom.com.
Forward-Looking Statements
This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this release regarding Gold Lion, TCB Digital, JS Leimone and Profit Harvest (collectively, “Gold Lion”), the value or likelihood of the merger, or Gold Lion’s future results are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The parties may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements, and readers/investors should not place undue reliance on the forward-looking statements. Important factors that could cause actual results or events to differ materially from the forward-looking statements, include among others: the ability of Zoom and Gold Lion to satisfy the conditions to closing of the proposed acquisition; the ability of Gold Lion to achieve its expected revenues and net income for 2009, which is dependent on a variety of factors; changing principles of generally accepted accounting principles; outcomes of government reviews, inquiries, investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments; requirements or changes adversely affecting the business in which Zoom or Gold Lion is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; the time to develop and market new products; general economic conditions; geopolitical events and regulatory changes. Further, the forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, collaborations or investments made by the combined company. These forward-looking statements inherently involve certain risks and uncertainties, some of which are detailed in Zoom’s proxy statement, its Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Neither Zoom nor Gold Lion assumes any obligation to update any forward-looking statements.
TraderPower Featured Companies
- Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF)
- Canada Nickel Company Inc. (TSX.V: CNC) (OTCQX: CNIKF)
- Cepton Inc. (NASDAQ: CPTN)
- CNS Pharmaceuticals Inc. (NASDAQ: CNSP)
- Correlate Energy Corp. (OTCQB: CIPI)
- Data443 Risk Mitigation Inc. (OTC: ATDS)
- Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF)
- Fintech Ecosystem Development Corp. (NASDAQ: FEXD)
- FingerMotion Inc. (NASDAQ: FNGR)
- Freight Technologies Inc. (NASDAQ: FRGT)
- HeartBeam Inc. (NASDAQ: BEAT)
- InMed Pharmaceuticals Inc. (NASDAQ: INM)
- Knightscope, Inc. (NASDAQ: KSCP)
- Lexaria Bioscience Corp. (NASDAQ: LEXX)
- Mullen Automotive Inc. (NASDAQ: MULN)
- Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI)
Top Small Cap Market News
- $AZMCF Clean Energy and Precious Metals Virtual Investor Conference Agenda Announced for December 4th- December 6th, 2023
- $CISO InvestorNewsBreaks – CISO Global Inc.’s (NASDAQ: CISO) TalaTek Secures Renewed Contract with Pension Benefit Guaranty Corporation
- $CIPI InvestorNewsBreaks – Correlate Energy Corp. (CIPI) Announces Completion of Continental Envelope Solar Facility
- $INM InvestorNewsBreaks – InMed Pharmaceuticals Inc. (NASDAQ: INM) Advancing INM-089 to Target Treatment of Age-Related Macular Degeneration
- $MULN Ford Dials Back its EV Battery Production Plans Amid Dropping Demand, Rising Labor Costs
- $SCNI InvestorNewsBreaks – Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) Announces Maturity Extension of EIB Finance Facility
- $SNES InvestorNewsBreaks – SenesTech Inc. (NASDAQ: SNES) Closes on Public Offering Resulting in Gross Proceeds of $5M
- $ELRRF InvestorNewsBreaks – Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF) (FSE: P2QM) CEO Featured in BTV Release Bolivia Project
Recent Posts
- $ELRRF InvestorNewsBreaks – Eloro Resources Ltd. (TSX.V: ELO) (OTCQX: ELRRF) (FSE: P2QM) CEO Featured in BTV Release Bolivia Project
- $SNES InvestorNewsBreaks – SenesTech Inc. (NASDAQ: SNES) Closes on Public Offering Resulting in Gross Proceeds of $5M
- $SCNI InvestorNewsBreaks – Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) Announces Maturity Extension of EIB Finance Facility
- $MULN Ford Dials Back its EV Battery Production Plans Amid Dropping Demand, Rising Labor Costs
- $INM InvestorNewsBreaks – InMed Pharmaceuticals Inc. (NASDAQ: INM) Advancing INM-089 to Target Treatment of Age-Related Macular Degeneration
- $CIPI InvestorNewsBreaks – Correlate Energy Corp. (CIPI) Announces Completion of Continental Envelope Solar Facility
- $CISO InvestorNewsBreaks – CISO Global Inc.’s (NASDAQ: CISO) TalaTek Secures Renewed Contract with Pension Benefit Guaranty Corporation
- $AZMCF Clean Energy and Precious Metals Virtual Investor Conference Agenda Announced for December 4th- December 6th, 2023
Recent Comments
Archives
- December 2023
- January 2023
- June 2022
- December 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009