ZOOM Technologies, Inc. Reports Unaudited Consolidated Financial Results for the First Quarter Ended March 31, 2013; Provides Revenue Guidance for the Second Quarter of 2013
May 19, 2013
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Zoom Technologies, Inc. reported unaudited consolidated financial results for the first quarter ended March 31, 2013. For the first quarter of 2013, the company generated net revenue of $7.4 million from continuing operations, down 54.2% from $16.1 million as compared to the first quarter of 2012. The decline in revenue reflected the general economic conditions in the United States and the company's lack of profit drivers in its product portfolio at the retail level in the U.S. Net loss attributable to the company was $1.5 million or $0.05 per basic and diluted share compared to net income attributable to the company of $0.5 million or $0.02 per basic and diluted share in the same quarter of 2012. Again, these are the results of weak revenues, plus the on-going restructuring efforts. Approximately half of the first quarter losses were attributable to corporate overhead costs including about $200,000 in non-cash charges. Loss from operations was $820,526 against $161,266 a year ago. Loss before income taxes and noncontrolling interest was $1,291,441 against $385,239 a year ago. Loss before noncontrolling interest from continuing operations was $1,293,691 against $385,239 a year ago. Loss attributable to the company from continuing operations was $1,141,818 or $0.04 per basic and diluted share against $624,981 or $0.03 per basic and diluted share a year ago. Net cash used in operating activities was $2,120,125 against $1,879,333 a year ago. Purchase of property and equipment and other long-term assets was $87,563 against $111,865 a year ago.
The company believes the introduction of new products and services in the second quarter of 2013 should bring a significant turnaround in top line revenue.
Zoom Technologies, Inc. (Zoom) is a holding company and owns subsidiaries, primarily engaged in technology and communications businesses in China. The Company owns Gold Lion Holding Limited, and through it, owns 100% of Profit Harvest Corporation Ltd, which further owns 100% of Celestial Digital Entertainment, Ltd., a mobile platform video game development company. The Company, through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co. Ltd (Jiangsu Leimone), owns 80% of Tianjin Tong Guang Group Digital Communication Co., Ltd (TCB Digital). Both TCB Digital and Jiangsu Leimone are in the business of manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry, GPS equipment, and related software products.
ZOOM Technologies, Inc. Reports Unaudited Consolidated Financial Results for the First Quarter Ended March 31, 2013; Provides Revenue Guidance for the Second Quarter of 2013