Welcome!

News Feed Item

Zoom Telephonics Reports Results for the Fourth Quarter of 2012

BOSTON, MA -- (Marketwire) -- 02/25/13 -- Zoom Telephonics, Inc. ("Zoom") (OTCQB: ZMTP), a leading manufacturer of modems and other communication products, today reported net sales of $3.4 million for the fourth quarter ended December 31, 2012 ("Q4 2012"), down 5.6% from $3.7 million for the fourth quarter of 2011 ("Q4 2011"). The lower sales were primarily due to lower dial-up modem sales, as Zoom's sales mix continued to shift toward cable modems. Zoom reported a net loss of $253 thousand or $0.04 per share for Q4 2012, compared to a net profit of $5 thousand or $0.00 per share for Q4 2011.

Gross profit was $866 thousand or 25.1% of net sales in Q4 2012, down from gross profit of $987 thousand or 27.0% of net sales in Q4 2011. Gross profit declined due to lower sales and a product mix shift toward cable modems, which have lower gross margins than most other Zoom products.

Operating expenses were $1.098 million or 31.8% of net sales in Q4 2012, up from $984 thousand or 27.0% of net sales in Q4 2011. General and administrative ("G&A") expenses increased $89 thousand to $344 thousand from Q4 2011 to Q4 2012, with the largest increase due to reallocation of a portion of certain employees' salary and benefit expenses from manufacturing to G&A to better reflect their job functions. Research and development expenses increased $45 thousand to $306 thousand from Q4 2011 to Q4 2012, with the largest increase due to increased expenses for cable modem certifications. Selling expenses decreased $20 thousand to $448 thousand from Q4 2011 to Q4 2012 due primarily to reduced freight costs.

Zoom's net sales of $14.7 million for the fiscal year ended December 31, 2012 ("FY 2012") were up 15.9% from net sales of $12.7 million for the fiscal year ended December 31, 2011 ("FY 2011"), primarily due to higher cable modem sales in FY 2012. Zoom's net loss was $0.7 million for FY 2012 compared to a net loss of $0.9 million for FY 2011. The lower net loss for FY 2012 was primarily due to an increase of $0.3 million in gross profit as a result of higher sales, partially offset by a $0.1 million increase in operating expenses for the period.

Gross profit for FY 2012 was $3.6 million or 24.7% of sales, up from gross profit of $3.3 million or 26.1% of net sales in FY 2011. The increase in gross profit was primarily due to increased sales during FY 2012.

Operating expenses were $4.3 million or 29.4% of net sales in FY 2012, down slightly from $4.2 million or 33.5% of net sales in FY 2011. Research and development expenses increased $146 thousand to $1.2 million from FY 2011 to FY 2012, with the largest increases due to increased ZoomGuard™ development costs and higher costs for cable modem certifications. General and administrative expenses increased $80 thousand to $1.3 million from FY 2011 to FY 2012, with the largest increase due to reallocation of a portion of certain key employees' salary and benefit expenses from manufacturing to G&A to better reflect their job functions. Selling expenses decreased $157 thousand to $1.9 million from FY 2011 to FY 2012 due primarily to lower freight costs and lower search-related advertising costs.

Zoom's cash balance on December 31, 2012 was $196 thousand, down $448 thousand from December 31, 2011. Zoom's $0.6 million increase in net accounts receivable and $0.7 million loss in 2012 were the main reasons for the decrease in cash. Zoom's $0.9 million increase in bank debt increased cash as Zoom moved to minimize early-pay discounts and thereby increased its average time to collect receivables. Zoom's current ratio was 2.3 on December 31, 2012.

"As we enter 2013, we are encouraged by cable modem developments including Time Warner Cable's Q4 2012 start of a retail certification program for cable modems," said Frank Manning, Zoom's President and CEO. "We are also encouraged by our significant progress in ZoomGuard development. We have begun shipping ZoomGuard samples, and we expect volume shipments of several ZoomGuard products during Q2 2013. We believe that the upside for our Company is the best it's been in many years, especially if we can continue building cable modem momentum and successfully introduce ZoomGuard."

Zoom has scheduled a conference call for Tuesday, February 26, 2013 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 16257594. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, www.zoomtel.com/Q4, 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 [email protected], 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; risks relating to product certifications; Zoom's dependence on key employees; uncertainty of new product development and introduction for ZoomGuard™ and other products, including budget overruns, project delays, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; Zoom's ability to continue as a going concern; costs and senior management distractions due to patent-related matters; 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)

                                                     12/31/12     12/31/11
                                                   ===========  ===========

ASSETS

Current assets:

  Cash                                             $       196  $       644
  Marketable securities                                     44           82
  Accounts receivable, net                               1,966        1,399
  Inventories                                            2,630        2,723
  Prepaid expenses and other                               262          186
                                                   -----------  -----------

    Total current assets                                 5,098        5,034

Property and equipment, net                                 26           20

                                                   -----------  -----------
    Total assets                                   $     5,124  $     5,054
                                                   ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY


                                                   -----------  -----------
Current liabilities:
  Bank debt                                        $       911  $        --
  Accounts payable                                         931        1,059
  Accrued expenses                                         380          373
                                                   -----------  -----------

    Total current liabilities                            2,222        1,432

                                                   -----------  -----------
    Total liabilities                                    2,222        1,432
                                                   -----------  -----------

Stockholders' equity:

  Common stock and additional paid-in capital           33,974       33,935
  Accumulated other comprehensive income (loss)            368          356
  Unrealized gain (loss) on securities                    (269)        (231)
  Retained earnings (accumulated deficit)              (31,171)     (30,438)

                                                   -----------  -----------
    Total stockholders' equity                           2,902        3,622
                                                   -----------  -----------

                                                   -----------  -----------
    Total liabilities & stockholders' equity       $     5,124  $     5,054
                                                   ===========  ===========



                           ZOOM TELEPHONICS, INC.
                     Condensed Statements of Operations
                  In thousands, except for per share data
                                (Unaudited)

                                   Three Months Ended   Twelve Months Ended
                                   12/31/12   12/31/11  12/31/12   12/31/11
                                  =========  ========= =========  =========

Net sales                         $   3,448  $   3,651 $  14,691  $  12,672
Cost of goods sold                    2,582      2,664    11,057      9,369
                                  ---------  --------- ---------  ---------

Gross profit                            866        987     3,634      3,303

Operating expenses:
  Selling                               448        468     1,907      2,064
  General and administrative            344        255     1,252      1,172
  Research and development              306        261     1,155      1,009
                                  ---------  --------- ---------  ---------
    Total operating expenses          1,098        984     4,314      4,245
                                  ---------  --------- ---------  ---------

  Operating profit (loss)              (232)         3      (680)      (942)

Other income (expense), net             (20)         3       (49)        74
                                  ---------  --------- ---------  ---------

  Income (loss) before income
   taxes                               (252)         6      (729)      (868)

Income tax expense                        1          1         3          2

  Net income (loss)               $    (253) $       5 $    (732) $    (870)
                                  =========  ========= =========  =========

Earnings (loss) per share:
  Basic Earnings (loss) per share $   (0.04) $    0.00 $   (0.11) $   (0.15)
  Diluted Earnings (loss) per
   share                          $   (0.04) $    0.00 $   (0.11) $   (0.15)

                                  =========  ========= =========  =========

Weighted average number of shares
 outstanding:
  Basic                               6,974      6,113     6,974      5,618
  Diluted                             6,974      6,113     6,974      5,618
                                  =========  ========= =========  =========

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
"We analyze the video streaming experience. We are gathering the user behavior in real time from the user devices and we analyze how users experience the video streaming," explained Eric Kim, Founder and CEO at Streamlyzer, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.