Zoom Technologies Inc. (ZOOM, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $3.3 million; its shares were traded at around $1.6699 with and P/S ratio of 0.2.
Summary. Net sales were $2.3 million for our first quarter ended March 31, 2009, down 34.4% from $3.6 million in the first quarter of 2008. We had a net loss of $0.945 million for the first quarter of 2009, compared to a net loss of $0.922 million in the first quarter of 2008. Loss per diluted share was $0.49 in the first quarter of 2009 compared to $0.49 for the first quarter of 2008.
Net Sales. Our total net sales for the first quarter of 2009 decreased $1.2 million or 34.4% from the first quarter of 2008, primarily due to decreases in DSL and dial-up modem sales, and wireless product sales. The large decline in modem sales was primarily due to the loss of DSL retail placements and to the continued decline of the dial-up modem after-market. DSL modem net sales decreased from $1.3 million in the first quarter of 2008 to $0.6 million in the first 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. Dial-up modem net sales decreased from $1.4 million in the first quarter of 2008 to $1.1 million in the first quarter of 2009, primarily due to the decline in the dial-up modem market. Cable modem sales were $0.3 million in both the first quarter of 2008 and the first quarter of 2009.
Our net sales in North America decreased by $0.4 million from $2.4 million in the first quarter of 2008 to $2.0 million in the first quarter of 2009. Our net sales outside North America declined by $0.8 million from $1.2 million in the first quarter of 2008 to $0.4 million in the first quarter of 2009.
Gain on Sale of Real Estate. No gain on sale of real estate was recorded in the first quarter of 2009. A gain on sale of real estate of $0.096 million was recorded in the first quarters of 2008. In December 2006 Zoom sold its headquarter building in Boston and agreed to lease-back some of the office space This 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.
In the first quarter of 2009 the Companys operating activities used $0.2 million in cash. The Companys net loss in the first quarter of 2009 was $0.9 million. Sources of cash from operations included a decrease in inventories of $0.4 million, a decrease in accounts receivable of $0.2 million, and an increase in accounts payable and accrued expense of $0.1 million. There were no significant uses of cash from operations.
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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 $3.3 million; its shares were traded at around $1.6699 with and P/S ratio of 0.2.
Highlight of Business Operations:
In the first quarter of 2009 the Companys operating activities used $0.2 million in cash. Its net loss for the quarter was $0.9 million. Sources of cash from operations included a decrease in inventories of $0.4 million, a decrease in accounts receivable of $0.2 million, and an increase in accounts payable and accrued expense of $0.1 million. There were no significant uses of cash from operations.Summary. Net sales were $2.3 million for our first quarter ended March 31, 2009, down 34.4% from $3.6 million in the first quarter of 2008. We had a net loss of $0.945 million for the first quarter of 2009, compared to a net loss of $0.922 million in the first quarter of 2008. Loss per diluted share was $0.49 in the first quarter of 2009 compared to $0.49 for the first quarter of 2008.
Net Sales. Our total net sales for the first quarter of 2009 decreased $1.2 million or 34.4% from the first quarter of 2008, primarily due to decreases in DSL and dial-up modem sales, and wireless product sales. The large decline in modem sales was primarily due to the loss of DSL retail placements and to the continued decline of the dial-up modem after-market. DSL modem net sales decreased from $1.3 million in the first quarter of 2008 to $0.6 million in the first 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. Dial-up modem net sales decreased from $1.4 million in the first quarter of 2008 to $1.1 million in the first quarter of 2009, primarily due to the decline in the dial-up modem market. Cable modem sales were $0.3 million in both the first quarter of 2008 and the first quarter of 2009.
Our net sales in North America decreased by $0.4 million from $2.4 million in the first quarter of 2008 to $2.0 million in the first quarter of 2009. Our net sales outside North America declined by $0.8 million from $1.2 million in the first quarter of 2008 to $0.4 million in the first quarter of 2009.
Gain on Sale of Real Estate. No gain on sale of real estate was recorded in the first quarter of 2009. A gain on sale of real estate of $0.096 million was recorded in the first quarters of 2008. In December 2006 Zoom sold its headquarter building in Boston and agreed to lease-back some of the office space This 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.
In the first quarter of 2009 the Companys operating activities used $0.2 million in cash. The Companys net loss in the first quarter of 2009 was $0.9 million. Sources of cash from operations included a decrease in inventories of $0.4 million, a decrease in accounts receivable of $0.2 million, and an increase in accounts payable and accrued expense of $0.1 million. There were no significant uses of cash from operations.
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