Zoom Technologies Inc. (ZOOM, Financial) filed Quarterly Report for the period ended 2009-06-30.
Zoom Tech is a leading designer producer and marketer of modems and other personal computer communications products for the home and office. They offer a broad line of modems with top data speeds available in internal external and PCMCIA models (PCMCIA models plug into a PCMCIA- standard slot typically found in a notebook or laptop computer). Zoom Technologies Inc. has a market cap of $6.8 million; its shares were traded at around $3.45 with and P/S ratio of 0.5.
Summary. Net sales were $3.1 million for our second quarter ended June 30, 2009, down 24.5% from $4.1 million in the second quarter of 2008. We had a net loss of $0.274 million for the second quarter of 2009, compared to a net loss of $0.833 million in the second quarter of 2008. Loss per diluted share was $0.14 in the second quarter of 2009 compared to $0.45 for the second quarter of 2008. Net sales were $5.4 million for the first six month ended June 30, 2009, down 29.2% from $7.6 million in the first six months ended June 30, 2008. We had a net loss of $1.3 million for the first six months ended June 30, 2009 compared to a net loss of $1.8 million for the first six months ended June 30, 2008. Loss per diluted share was $0.68 in the first six months ended June 30, 2009 compared to $0.94 for first six months ended June 30, 2008.
Net Sales. Our total net sales for the second quarter of 2009 decreased $1.0 million or 24.5% from the second quarter of 2008, primarily due to decreases in DSL and wireless product sales. DSL modem net sales decreased from $1.4 million in the second quarter of 2008 to $0.7 million in the second quarter of 2009. The DSL modem sales decline was primarily a result of declines in sales to large customers both in the U.S. and internationally, primarily due to price competition. Despite the continuing significant decline in the dial-up modem market, our dial-up modem net sales decreased less than 3% from the second quarter of 2008 to the second quarter of 2009, primarily due to increased sales of personal computers without dial-up modems. Wireless product sales decreased from $0.8 million in the second quarter of 2008 to $0.4 million in the second quarter of 2009. Cable modem sales were $0.4 million in both the second quarter of 2008 and the second quarter of 2009.
Our net sales in North America were $4.6 million in the first six months of 2009, a decrease from $5.1 million in the first six months of 2008. Our net sales in the U.K. were $0.4 million in the first six months of 2009 and $1.7 million in the first six months of 2008. Our net sales in countries outside North America and the U.K. were $0.4 million for the first six months of 2009 and $0.9 million for the first six months of 2008. The decline in sales outside North America was primarily due to declines in DSL modem sales resulting from aggressive price competition.
General and Administrative Expense. General and administrative expense was $0.5 million or 16.6% of net sales in the second quarter of 2009 and $0.6 million or 14.5% of net sales in the second quarter of 2008. General and administrative expense was reduced primarily in personnel and related costs, rent and utilities.. General and administrative expense in the second quarter of 2009 included $0.1 million of expense related to the China merger transaction. General and administrative expense was $1.3 million or 23.1% of net sales in the first six months of 2009 compared to $1.1 million or 14.9% of net sales in the first six months of 2008. General and administrative expense in first six months of 2009 included $0.4 million of expense related to the China merger transaction.
Gain on Sale of Real Estate. No gain on sale of real estate was recorded in the second quarter or the first six months of 2009. A gain on sale of real estate of $0.096 million and $0.19 million was recorded in the second quarter and the first six months of 2008, respectively. In December 2006 Zoom sold its headquarter building in Boston and agreed to lease-back some of the office space. The lease-back arrangement resulted in an accounting deferral of $0.725 million of the gain. This deferred gain was recorded over the subsequent eight quarters at $0.096 million per quarter for seven quarters and $0.053 million in the eighth and final quarter, which was the fourth quarter of 2008.
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Zoom Tech is a leading designer producer and marketer of modems and other personal computer communications products for the home and office. They offer a broad line of modems with top data speeds available in internal external and PCMCIA models (PCMCIA models plug into a PCMCIA- standard slot typically found in a notebook or laptop computer). Zoom Technologies Inc. has a market cap of $6.8 million; its shares were traded at around $3.45 with and P/S ratio of 0.5.
Highlight of Business Operations:
Zoom determined that the fair market value of its investment in Unity was $0.96 million, which resulted in a write-down of $0.219 million. The value of this investment on our June 30, 2009 balance sheet remains at $0.96 million. Zoom expects to receive approximately $1.0 million in cash as a result of the sale of Unity to Telesphere Networks Ltd. Telesphere announced the purchase of Unity on July 28, 2009. The closing of the transaction awaits regulatory approval which is anticipated but not guaranteed. If the transaction closes as expected, Zoom would receive approximately $0.8 million of the $1.0 million in August or September of 2009.Summary. Net sales were $3.1 million for our second quarter ended June 30, 2009, down 24.5% from $4.1 million in the second quarter of 2008. We had a net loss of $0.274 million for the second quarter of 2009, compared to a net loss of $0.833 million in the second quarter of 2008. Loss per diluted share was $0.14 in the second quarter of 2009 compared to $0.45 for the second quarter of 2008. Net sales were $5.4 million for the first six month ended June 30, 2009, down 29.2% from $7.6 million in the first six months ended June 30, 2008. We had a net loss of $1.3 million for the first six months ended June 30, 2009 compared to a net loss of $1.8 million for the first six months ended June 30, 2008. Loss per diluted share was $0.68 in the first six months ended June 30, 2009 compared to $0.94 for first six months ended June 30, 2008.
Net Sales. Our total net sales for the second quarter of 2009 decreased $1.0 million or 24.5% from the second quarter of 2008, primarily due to decreases in DSL and wireless product sales. DSL modem net sales decreased from $1.4 million in the second quarter of 2008 to $0.7 million in the second quarter of 2009. The DSL modem sales decline was primarily a result of declines in sales to large customers both in the U.S. and internationally, primarily due to price competition. Despite the continuing significant decline in the dial-up modem market, our dial-up modem net sales decreased less than 3% from the second quarter of 2008 to the second quarter of 2009, primarily due to increased sales of personal computers without dial-up modems. Wireless product sales decreased from $0.8 million in the second quarter of 2008 to $0.4 million in the second quarter of 2009. Cable modem sales were $0.4 million in both the second quarter of 2008 and the second quarter of 2009.
Our net sales in North America were $4.6 million in the first six months of 2009, a decrease from $5.1 million in the first six months of 2008. Our net sales in the U.K. were $0.4 million in the first six months of 2009 and $1.7 million in the first six months of 2008. Our net sales in countries outside North America and the U.K. were $0.4 million for the first six months of 2009 and $0.9 million for the first six months of 2008. The decline in sales outside North America was primarily due to declines in DSL modem sales resulting from aggressive price competition.
General and Administrative Expense. General and administrative expense was $0.5 million or 16.6% of net sales in the second quarter of 2009 and $0.6 million or 14.5% of net sales in the second quarter of 2008. General and administrative expense was reduced primarily in personnel and related costs, rent and utilities.. General and administrative expense in the second quarter of 2009 included $0.1 million of expense related to the China merger transaction. General and administrative expense was $1.3 million or 23.1% of net sales in the first six months of 2009 compared to $1.1 million or 14.9% of net sales in the first six months of 2008. General and administrative expense in first six months of 2009 included $0.4 million of expense related to the China merger transaction.
Gain on Sale of Real Estate. No gain on sale of real estate was recorded in the second quarter or the first six months of 2009. A gain on sale of real estate of $0.096 million and $0.19 million was recorded in the second quarter and the first six months of 2008, respectively. In December 2006 Zoom sold its headquarter building in Boston and agreed to lease-back some of the office space. The lease-back arrangement resulted in an accounting deferral of $0.725 million of the gain. This deferred gain was recorded over the subsequent eight quarters at $0.096 million per quarter for seven quarters and $0.053 million in the eighth and final quarter, which was the fourth quarter of 2008.
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