Zoom Technologies Inc. (ZOOM, Financial) filed Quarterly Report for the period ended 2010-03-31.
Zoom Technologies Inc. has a market cap of $47.3 million; its shares were traded at around $6.34 with and P/S ratio of 0.2.
Our revenues were $50,979,269 for the quarter ended March 31, 2010, an increase of 77% or $22,162,712 compared to $28,816,557 in the corresponding period in 2009. The increase of revenues in 2010 as compared to 2009 was mainly due to increase in orders from our domestic EMS customers and also increase in the sales of our own branded phones. In the first quarter of 2010, we sold a total of 71,069 units of our Leimone brand phones of which 6,244 were 3G handsets. Revenues from sales of our own branded products in the first quarter of 2010 totaled $4.63 million while that for the same period a year ago was insignificant.
For the first quarter of 2010, total operating expenses were $1,318,376 or 2.6% of revenues, which was a decrease of $517,429 from $1,835,805 and a reduction from 6.4% of revenues for the 2009 period. This was a result of management's continued emphasis on cost control and operational efficiency.
The Company's other expenses-net was $272,447 for the first quarter of 2010, was mainly comprised of interest expense of $257,626. For the corresponding 2009 period, other income-net was $175,958 mainly included interest expense of $320,907 offset by interest income of $154,170 and a non-recurring debt relief of $425,038.
Net cash used in operating activities for the three months ended March 31, 2010 was $1,147,778 compared to net cash used in operating activities for the 2009 period of $1,455,883. In the first three months of 2010, operational use of funds included an increase in accounts receivable of $1,636,001 and advances made to related parties of $4,472,721 and a decrease in accounts payable of $771,267; while offset by an increase in advances from customers of $2,197,215 and an increase in accrued expenses and other current liabilities of 470,364.
Net cash provided by financing activities was $1,007,608 in the first quarter of 2010 which included proceeds from short-term loans of $18,124,528, proceeds from notes payable of $1,960,199, receipts from related parties in the amount of $7,629,484. During this period, there was an outflow due to advance to related parties of $3,637,028 and repayment of short-term loans of $13,165,517 and also an outflow of $10,074,820 for repayment of borrowing from related parties.
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Zoom Technologies Inc. has a market cap of $47.3 million; its shares were traded at around $6.34 with and P/S ratio of 0.2.
Highlight of Business Operations:
On November 30, 2007, Gold Lion and GD Industrial Company signed a share transfer agreement pursuant to which GD Industrial Company transferred 60% equity of Nantong Zong Yi Kechuang Digital Camera Technology Co., Ltd. for $10,273 to Gold Lion. In July 2008, the company's name was changed to Jiangsu Leimone Electronic Co., Ltd., or Jiangsu Leimone. In January 2008, Gold Lion invested $5,074,226 (HK$38,800,000) in Jiangsu Leimone to increase Gold Lion's ownership in Jiangsu Leimone to 80%. Pursuant to the share transfer agreement by and between Gold Lion and Nantong Zong Yi Investment Co., Ltd. dated November 26, 2008, Gold Lion acquired the remaining 20% equity interest of Jiangsu Leimone from Nantong Zong Yi Investment Co., Ltd. for cash consideration of $103,214 (HK$800,000). After this transaction, Gold Lion obtained 100% ownership of Jiangsu Leimone. Jiangsu Leimone is engaged in the R&D and production of electronic assemblies, 3G mobile handsets, wireless communication modules, GPS receivers and computer software.Our revenues were $50,979,269 for the quarter ended March 31, 2010, an increase of 77% or $22,162,712 compared to $28,816,557 in the corresponding period in 2009. The increase of revenues in 2010 as compared to 2009 was mainly due to increase in orders from our domestic EMS customers and also increase in the sales of our own branded phones. In the first quarter of 2010, we sold a total of 71,069 units of our Leimone brand phones of which 6,244 were 3G handsets. Revenues from sales of our own branded products in the first quarter of 2010 totaled $4.63 million while that for the same period a year ago was insignificant.
For the first quarter of 2010, total operating expenses were $1,318,376 or 2.6% of revenues, which was a decrease of $517,429 from $1,835,805 and a reduction from 6.4% of revenues for the 2009 period. This was a result of management's continued emphasis on cost control and operational efficiency.
The Company's other expenses-net was $272,447 for the first quarter of 2010, was mainly comprised of interest expense of $257,626. For the corresponding 2009 period, other income-net was $175,958 mainly included interest expense of $320,907 offset by interest income of $154,170 and a non-recurring debt relief of $425,038.
Net cash used in operating activities for the three months ended March 31, 2010 was $1,147,778 compared to net cash used in operating activities for the 2009 period of $1,455,883. In the first three months of 2010, operational use of funds included an increase in accounts receivable of $1,636,001 and advances made to related parties of $4,472,721 and a decrease in accounts payable of $771,267; while offset by an increase in advances from customers of $2,197,215 and an increase in accrued expenses and other current liabilities of 470,364.
Net cash provided by financing activities was $1,007,608 in the first quarter of 2010 which included proceeds from short-term loans of $18,124,528, proceeds from notes payable of $1,960,199, receipts from related parties in the amount of $7,629,484. During this period, there was an outflow due to advance to related parties of $3,637,028 and repayment of short-term loans of $13,165,517 and also an outflow of $10,074,820 for repayment of borrowing from related parties.
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