BEIJING, May 16, 2011 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. (Nasdaq:ZOOM), a leading China based manufacturer of mobile phones and related products, today reported financial results for the first quarter ended March 31, 2011.
First Quarter 2011 Highlight:
- Revenue increased 15% over same quarter last year to $58.6 million.
- Own brand phone sales in the first quarter of 2011 reached 201,700 units compared to 71,069 units sold in same quarter last year
- Revenues from sales of own brand products in the first quarter of 2011 were $13.6 million, an increase of 195% over the same quarter last year
- Net income decreased 5.7% to $1.8 million from same quarter last year due to increased R&D activities
Maintains Same Guidance for Full Year 2011:
- Revenue of $320 million to $340 million, up 27%-35% from 2010
- Net income of $16 million to $17 million, up 25%-33% from 2010
- Leimone brand phone sales of 1.4 million units
Our revenues were $58,611,686 for the quarter ended March 31, 2011, an increase of 15.0% or $7,632,417 as compared to $50,979,269 in the corresponding quarter last year. The increase was due to the sales of our own "Leimone" brand mobile phones.
In the first quarter of 2011, we sold 201,700 units of our Leimone brand phones of which 164,102 were 3G handsets. Revenues from sales of our own branded products in the first quarter of 2011 were $13.6 million, representing an increase of 195% over $4.6 million for the same three-month period in 2010 where total units of Leimone brand phones sold were 71,069 of which 6,000 were 3G units.
Gross profit for the first quarter of 2011 was $6,348,869, an increase of 52.0% or $2,170,615 over $4,178,254 of the first quarter last year. Gross margin, the ratio of gross profit as a percentage of revenues was 10.8% in Q1 of 2011 compared to 8.2% for Q1 2010. This increase was primarily attributed to the increased sales of our own brand phones which carried a higher profit margin than our traditional EMS business.
For the quarter ended March 31, 2011, the Company's net income was $1,786,813, a decrease of $108,889 or 5.7% from $1,895,702 for the corresponding 2010 quarter. Net margins, the ratio of net income over revenues, for the first quarters of 2011 and 2010 were 3.0% and 3.7% respectively. The significantly increased R&D expenditures of $1.6 million, in the Company's effort to introduce new mobile phone models later on in 2011, caused a slight decrease in net income from the same period of last year.
Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies, commented, "We are glad to report that our own brand phones are establishing a strong foot hold in the market place and sales so far this year gave us confidence that our phones will continue to gain acceptance going forward. We have intensified our R&D activities in the first three months to gear up for the release of new products in the coming quarters. With the technology licensing agreement from Qualcomm recently secured, we are focusing on introducing innovative phone models based on the latest 3G technologies for smartphones with the Android operating system; and we are aiming not only for the dynamic Chinese market but also to Asia, Europe and beyond."
Conference Call Details:
The company will host an investor call at 4:30 p.m. EDT (1:30 p.m. PDT) today May 16, 2011. To access the conference call, dial +1-866-405-2350. Callers outside the U.S. and Canada should dial +65-6723-9388. Then enter access code 66838641.
A replay of the conference call will be available for 20 days, through June 4, 2011. To access the replay, please dial +1-866-214-5335. Callers outside the U.S. and Canada should dial +61-2-8235-5000. Then enter access code 66838641.
About Zoom Technologies
Zoom Technologies is a holding Company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its Own Brand Manufacturing (OBM) under the Zoom and Leimone brand names. The Company's products are both exported and sold domestically in People's Republic of China.
The Zoom Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9665