ZOOM Technologies, Inc. Reports Financial Results for the First Quarter Ended March 31, 2012; Provides Earnings Guidance for the Rest of 2012
May 21, 2012 at 09:00 pm
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ZOOM Technologies, Inc. reported financial results for the first quarter ended March 31, 2012. For the first quarter of 2012, the company generated net revenue of $90.9 million, up 55.1% over $58.6 million for the first quarter 2011; this seasonally slow quarter was down $48.1 million, or 34.6% from $139.0 million in the fourth quarter of 2011. The jump in revenues in first quarter of 2012 as compared to the same period in 2011 was mainly due to increased sales of whole handsets with particular emphasis on own brand Leimone products and the addition of Portables Unlimited that Zoom partially acquired in October 2011. For the first quarter of 2012, the company reported a net income of $0.6 million compared to net loss of $2.0 million in the fourth quarter of 2011.
The company has returned to profitability again in the first quarter of 2012, and expects a steady upward trend for the rest of 2012.
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.