Bookmark and Share

Zoom Technologies, Inc. (ZOOM) Reports Q2 2009 Financial Results of Recently Approved Acquisition

BOSTON, MA — (Marketwire) — 09/14/09 — Zoom Technologies, Inc. (NASDAQ: ZOOM)


--  Recently approved Zoom acquisition expected to close by end of
--  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

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.

Monday, September 14th, 2009 Uncategorized
Top Small Cap Market News