ZOOM Technologies, Inc. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012
April 15, 2013 at 10:09 pm
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ZOOM Technologies, Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2012. Revenue for the fourth quarter of 2012 was $10.1 million, a decrease of 24.9% over same quarter last year of $13.5 million. The decline in revenue reflected the general economic conditions in the United States. Loss from continuing operations of $7.1 million for the quarter compared to $1.9 million. Net loss of $34.5 million compared to net loss of $2.9 million in same quarter last year. Net loss in the quarter resulted from disposition of subsidiaries Profit Harvest and Celestial Digital Entertainment, impairment charges for the write down of goodwill related to Ever Elite, Nollec Wireless, and TCB Digital.
For the year, net revenues were $49,773,552 against $13,476,376 a year ago. Loss from operations was $8,545,294 against $4,908,722 a year ago. Loss before income taxes and non-controlling interest from continuing operations was $9,149,017 against profit before income taxes and non-controlling interest from continuing operations of $547,826 a year ago. Loss attributable to company from continuing operations was $9,763,909 or 0.36 per basic and diluted share against $860,828 or $0.05 per basic and diluted share a year ago. Net loss attributable to company was $32,452,511 or $1.20 per basic and diluted against net profit of $6,377,847 or $0.32 per diluted a year ago. Net cash used in operating activities was $35,745,783 against $1,967,962 a year ago. Purchase of property and equipment and other long-term assets was $321,835 against $58,105 a year ago. The significant net losses were the results of discontinuation and disposal of operations detailed above.
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.