|By Marketwired .||
|February 25, 2013 10:23 PM EST||
BOSTON, MA -- (Marketwire) -- 02/25/13 -- Zoom Telephonics, Inc. ("Zoom") (OTCQB: ZMTP), a leading manufacturer of modems and other communication products, today reported net sales of $3.4 million for the fourth quarter ended December 31, 2012 ("Q4 2012"), down 5.6% from $3.7 million for the fourth quarter of 2011 ("Q4 2011"). The lower sales were primarily due to lower dial-up modem sales, as Zoom's sales mix continued to shift toward cable modems. Zoom reported a net loss of $253 thousand or $0.04 per share for Q4 2012, compared to a net profit of $5 thousand or $0.00 per share for Q4 2011.
Gross profit was $866 thousand or 25.1% of net sales in Q4 2012, down from gross profit of $987 thousand or 27.0% of net sales in Q4 2011. Gross profit declined due to lower sales and a product mix shift toward cable modems, which have lower gross margins than most other Zoom products.
Operating expenses were $1.098 million or 31.8% of net sales in Q4 2012, up from $984 thousand or 27.0% of net sales in Q4 2011. General and administrative ("G&A") expenses increased $89 thousand to $344 thousand from Q4 2011 to Q4 2012, with the largest increase due to reallocation of a portion of certain employees' salary and benefit expenses from manufacturing to G&A to better reflect their job functions. Research and development expenses increased $45 thousand to $306 thousand from Q4 2011 to Q4 2012, with the largest increase due to increased expenses for cable modem certifications. Selling expenses decreased $20 thousand to $448 thousand from Q4 2011 to Q4 2012 due primarily to reduced freight costs.
Zoom's net sales of $14.7 million for the fiscal year ended December 31, 2012 ("FY 2012") were up 15.9% from net sales of $12.7 million for the fiscal year ended December 31, 2011 ("FY 2011"), primarily due to higher cable modem sales in FY 2012. Zoom's net loss was $0.7 million for FY 2012 compared to a net loss of $0.9 million for FY 2011. The lower net loss for FY 2012 was primarily due to an increase of $0.3 million in gross profit as a result of higher sales, partially offset by a $0.1 million increase in operating expenses for the period.
Gross profit for FY 2012 was $3.6 million or 24.7% of sales, up from gross profit of $3.3 million or 26.1% of net sales in FY 2011. The increase in gross profit was primarily due to increased sales during FY 2012.
Operating expenses were $4.3 million or 29.4% of net sales in FY 2012, down slightly from $4.2 million or 33.5% of net sales in FY 2011. Research and development expenses increased $146 thousand to $1.2 million from FY 2011 to FY 2012, with the largest increases due to increased ZoomGuard development costs and higher costs for cable modem certifications. General and administrative expenses increased $80 thousand to $1.3 million from FY 2011 to FY 2012, with the largest increase due to reallocation of a portion of certain key employees' salary and benefit expenses from manufacturing to G&A to better reflect their job functions. Selling expenses decreased $157 thousand to $1.9 million from FY 2011 to FY 2012 due primarily to lower freight costs and lower search-related advertising costs.
Zoom's cash balance on December 31, 2012 was $196 thousand, down $448 thousand from December 31, 2011. Zoom's $0.6 million increase in net accounts receivable and $0.7 million loss in 2012 were the main reasons for the decrease in cash. Zoom's $0.9 million increase in bank debt increased cash as Zoom moved to minimize early-pay discounts and thereby increased its average time to collect receivables. Zoom's current ratio was 2.3 on December 31, 2012.
"As we enter 2013, we are encouraged by cable modem developments including Time Warner Cable's Q4 2012 start of a retail certification program for cable modems," said Frank Manning, Zoom's President and CEO. "We are also encouraged by our significant progress in ZoomGuard development. We have begun shipping ZoomGuard samples, and we expect volume shipments of several ZoomGuard products during Q2 2013. We believe that the upside for our Company is the best it's been in many years, especially if we can continue building cable modem momentum and successfully introduce ZoomGuard."
Zoom has scheduled a conference call for Tuesday, February 26, 2013 at 10:00 a.m. Eastern Time. You may access the conference call by dialing (866) 393-7958 and international callers may dial (706) 643-5255. The conference ID is 16257594. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, www.zoomtel.com/Q4, and to other financial and investor-oriented websites. Shortly after the conference call, a recording of the call will be available on Zoom's website. For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 753-0897, email [email protected], or visit Zoom's website at www.zoomtel.com
About Zoom Telephonics
Founded in 1977 in Boston, Zoom Telephonics, Inc. designs, produces, markets, and supports modems and other communication products under the Zoom, Hayes®, and Global Village® brands. For more information about Zoom and its products, please see www.zoomtel.com.
This release contains forward-looking information relating to Zoom Telephonics' plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including: the potential need for additional funding which Zoom may be unable to obtain; declining demand for certain of Zoom's products; delays, unanticipated costs, interruptions or other uncertainties associated with Zoom's production and shipping; Zoom's reliance on several key outsourcing partners; uncertainty of key customers' plans and orders; risks relating to product certifications; Zoom's dependence on key employees; uncertainty of new product development and introduction for ZoomGuard and other products, including budget overruns, project delays, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; Zoom's ability to continue as a going concern; costs and senior management distractions due to patent-related matters; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.
ZOOM TELEPHONICS, INC. Condensed Balance Sheets In thousands (Unaudited) 12/31/12 12/31/11 =========== =========== ASSETS Current assets: Cash $ 196 $ 644 Marketable securities 44 82 Accounts receivable, net 1,966 1,399 Inventories 2,630 2,723 Prepaid expenses and other 262 186 ----------- ----------- Total current assets 5,098 5,034 Property and equipment, net 26 20 ----------- ----------- Total assets $ 5,124 $ 5,054 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY ----------- ----------- Current liabilities: Bank debt $ 911 $ -- Accounts payable 931 1,059 Accrued expenses 380 373 ----------- ----------- Total current liabilities 2,222 1,432 ----------- ----------- Total liabilities 2,222 1,432 ----------- ----------- Stockholders' equity: Common stock and additional paid-in capital 33,974 33,935 Accumulated other comprehensive income (loss) 368 356 Unrealized gain (loss) on securities (269) (231) Retained earnings (accumulated deficit) (31,171) (30,438) ----------- ----------- Total stockholders' equity 2,902 3,622 ----------- ----------- ----------- ----------- Total liabilities & stockholders' equity $ 5,124 $ 5,054 =========== =========== ZOOM TELEPHONICS, INC. Condensed Statements of Operations In thousands, except for per share data (Unaudited) Three Months Ended Twelve Months Ended 12/31/12 12/31/11 12/31/12 12/31/11 ========= ========= ========= ========= Net sales $ 3,448 $ 3,651 $ 14,691 $ 12,672 Cost of goods sold 2,582 2,664 11,057 9,369 --------- --------- --------- --------- Gross profit 866 987 3,634 3,303 Operating expenses: Selling 448 468 1,907 2,064 General and administrative 344 255 1,252 1,172 Research and development 306 261 1,155 1,009 --------- --------- --------- --------- Total operating expenses 1,098 984 4,314 4,245 --------- --------- --------- --------- Operating profit (loss) (232) 3 (680) (942) Other income (expense), net (20) 3 (49) 74 --------- --------- --------- --------- Income (loss) before income taxes (252) 6 (729) (868) Income tax expense 1 1 3 2 Net income (loss) $ (253) $ 5 $ (732) $ (870) ========= ========= ========= ========= Earnings (loss) per share: Basic Earnings (loss) per share $ (0.04) $ 0.00 $ (0.11) $ (0.15) Diluted Earnings (loss) per share $ (0.04) $ 0.00 $ (0.11) $ (0.15) ========= ========= ========= ========= Weighted average number of shares outstanding: Basic 6,974 6,113 6,974 5,618 Diluted 6,974 6,113 6,974 5,618 ========= ========= ========= =========
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Sep. 29, 2016 10:30 PM EDT Reads: 4,021
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 29, 2016 10:00 PM EDT Reads: 1,804
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 29, 2016 08:45 PM EDT Reads: 2,209
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Sep. 29, 2016 08:45 PM EDT Reads: 1,546
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Sep. 29, 2016 06:15 PM EDT Reads: 3,685
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 29, 2016 05:15 PM EDT Reads: 2,855
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Sep. 29, 2016 04:45 PM EDT Reads: 2,794
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Sep. 29, 2016 04:45 PM EDT Reads: 3,446
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 29, 2016 04:30 PM EDT Reads: 1,343
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 29, 2016 04:00 PM EDT Reads: 2,401
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 29, 2016 04:00 PM EDT Reads: 482
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 29, 2016 03:30 PM EDT Reads: 1,629
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 29, 2016 03:15 PM EDT Reads: 1,795
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 29, 2016 03:00 PM EDT Reads: 2,973
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Sep. 29, 2016 03:00 PM EDT Reads: 2,834
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 29, 2016 02:00 PM EDT Reads: 3,958
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 29, 2016 02:00 PM EDT Reads: 1,184
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 29, 2016 02:00 PM EDT Reads: 3,627
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 29, 2016 02:00 PM EDT Reads: 4,206
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 29, 2016 01:45 PM EDT Reads: 1,130