Second Quarter 2013 Highlights:
- Revenue for the second quarter of 2013 was $6.76 million a decrease of $4.93 million, or 42.1%, from $11.69 million for the same quarter last year
- Loss from continuing operations $0.44 million for the quarter compared to $0.78 million a year ago
- Net loss of $2.73 million compared to net income of $0.77 million in same quarter last year
- Net loss in the quarter resulted from the loss on disposal of certain discontinued operations
BEIJING, Aug. 20, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. ZOOM (the "Company") is a holding company, and through its subsidiary Portables Unlimited LLC ("Portables"), engages in the exclusive distribution of T-Mobile USA branded cellular service and mobile products in the U.S. On August 19, 2013, after the close of the market, ZOOM filed its form 10Q with the U.S. Securities and Exchange Commission to report the Company's financial results for the second quarter ended June 30, 2013.
At the end of the second quarter of 2013, ZOOM showed improved operating results. New voice and data service plans, and installment payment plans for the sale of mobile phones rolled out by T-Mobile USA has led to the modification of the existing business model of Portables. Under the new plans, Portables has seen a general decrease in revenue, but a general increase in gross margin, especially on the commission received for the activation of service plans. The introduction of Apple iPhone5 to T-Mobile USA and Portables' product portfolio has brought positive results.
For the second quarter of 2013, ZOOM generated net revenue of $6.76 million from continuing operations, down 42.1% from $11.69 million as compared to the second quarter of 2012. As mentioned above, the modification of the business model has affected top line revenue; however, Portables has seen significant margin improvement.
Net loss during the first quarter of 2013 was $2.73 million compared to net profit of $0.77 million in the same quarter of 2012. These are the results of on-going restructuring efforts.
Mr. Lei Gu, Chairman & CEO of ZOOM had the following to say about the second quarter. "We are glad to see that the U.S. economy is growing and T-Mobile USA's renewed strategy is positively affecting Portables operating results. We also believe that the Portables management team has done a great job of trimming costs and improving margins. In China we need to continue to work quickly to complete the sales of our assets so that we can put more money to work in new opportunities."
Conference Call Details
Zoom will review the second quarter 2013 results and discuss management's expectations for the remainder of 2013 on Friday, August 23, 2013 at 8:30 a.m. ET (5:30 a.m. PT). The dial-in numbers are +1-855-500-8701 for US domestic callers and +65-6723-9385 for international callers, and then enter the access code (conference ID) 34590516. A replay of the conference call will be available through August 26, 2013. The replay dial-in numbers are +1 855-452-5696 for US domestic callers and +61-2-8199-0299 for international callers, and then enter access code 34590516.
About Zoom Technologies, Inc.
Zoom Technologies, Inc. through its subsidiary, Portables Unlimited LLC, operates an exclusive wholesale distributor business for T-Mobile products and services in the United States.
Forward-Looking Statements
Certain statements in this press release may constitute "forward looking statements" that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events in which the outcome cannot be assured. You should not place undue reliance on these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.
| ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
|
JUNE 30, 2013 |
DECEMBER 31, 2012 |
|
| (Unaudited) | ||
| ASSETS | ||
| Current assets | ||
| Cash and equivalents | $ 748,788 | $ 430,746 |
| Restricted cash | 19,438,865 | 19,044,294 |
| Accounts receivable, net | 3,344,299 | 3,246,247 |
| Inventories, net | 331,737 | 928,881 |
| Other receivables and prepaid expenses | 3,628,723 | 4,514,434 |
| Due from related parties | 21,026,927 | 20,964,025 |
| Current assets of discontinued operations, held for sale | 167,973,574 | 144,751,290 |
| Total current assets | 216,492,913 | 193,879,917 |
| Property, plant and equipment, net | 2,356,058 | 2,376,639 |
| Equipment deposit | 35,249 | 35,249 |
| Intangible assets | 474,189 | 480,690 |
| Long-term investments | 11,579,315 | 11,912,956 |
| Goodwill | 27,031,492 | 27,031,492 |
| TOTAL ASSETS | $ 257,969,216 | $ 235,716,943 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Short-term loans | 3,608,772 | 3,519,999 |
| Accounts payable | 4,411,938 | 6,409,278 |
| Accrued expenses and other payables | 3,481,463 | 3,814,647 |
| Purchase deposit from buyer | 8,240,490 | 8,740,490 |
| Taxes payable | 22,797 | 22,334 |
| Due to related parties | 9,260,021 | 9,889,037 |
| Warrant liability | 4 | 7,340 |
| Current liabilities of discontinued operations | 164,848,005 | 138,348,859 |
| Total current liabilities | 193,873,490 | 170,751,984 |
| Long-term loans | 1,708,928 | -- |
| Long-term notes payables | 320,000 | 317,500 |
| TOTAL LIABILITIES | 195,902,418 | 171,069,484 |
| COMMITMENTS AND CONTINGENCIES | ||
| EQUITY | ||
| STOCKHOLDERS' EQUITY | ||
| Preferred stock: authorized 1,000,000 shares, par value $0.01 none issued and outstanding | -- | -- |
| Common stock: authorized 60,000,000 shares, par value $0.01; 29,526,848 shares issued and 29,525,168 shares outstanding at June 30, 2013; 29,320,848 shares issued and 29,319,168 shares outstanding at December 31, 2012. | 295,252 | 293,192 |
| Treasury shares: 1,680 shares at cost | (7,322) | (7,322) |
| Additional paid-in capital | 51,752,013 | 51,108,409 |
| Statutory surplus reserve | 737,623 | 702,539 |
| Accumulated other comprehensive income | 4,837,092 | 4,058,657 |
| Accumulated deficit | (8,325,691) | (4,098,798) |
| TOTAL STOCKHOLDERS' EQUITY | 49,288,967 | 52,056,677 |
| Non-controlling interest | 12,777,831 | 12,590,782 |
| TOTAL EQUITY | 62,066,798 | 64,647,459 |
| TOTAL LIABILITIES AND EQUITY | $ 257,969,216 | $ 235,716,943 |
| ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
|
THREE MONTHS ENDED JUNE 30, |
SIX MONTHS ENDED JUNE 30, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Net revenues | $ 6,764,881 | $ 11,691,462 | $ 14,130,111 | $ 27,773,797 |
| Cost of sales | 4,448,240 | 9,432,110 | 10,341,986 | 22,770,558 |
| Gross profit | 2,316,641 | 2,259,352 | 3,788,125 | 5,003,239 |
| Operating expenses: | ||||
| Selling, general, and administrative expenses | 1,987,113 | 2,242,562 | 4,085,279 | 4,713,466 |
| Non-cash equity-based compensation | 451,821 | 837,310 | 645,665 | 1,271,559 |
| Total operating expenses | 2,438,934 | 3,079,872 | 4,730,944 | 5,985,025 |
| Loss from operations | (122,293) | (820,520) | (942,819) | (981,786) |
| Other income and (expenses) | ||||
| Interest income | -- | 5 | -- | 11 |
| Interest expense | (205,544) | (185,137) | (425,370) | (296,254) |
| Change in fair value of warrants | 13,711 | 350,323 | 7,336 | 233,370 |
| Investment loss | (81,053) | -- | (333,641) | -- |
| Other income (expense), net | 315,224 | 16,427 | 323,098 | 20,518 |
| Other income (expense), net | 42,338 | 181,618 | (428,577) | (42,355) |
| Loss before income taxes and noncontrolling interest | (79,955) | (638,902) | (1,371,396) | (1,024,141) |
| Income taxes for continuing operations | 107,267 | -- | 109,517 | -- |
| Loss before noncontrolling interest from continuing operations | (187,222) | (638,902) | (1,480,913) | (1,024,141) |
| less: Income attributable to noncontrolling interest of continuing operations | 257,057 | 144,414 | 105,184 | 384,156 |
| Loss attributable to Zoom Technologies, Inc. from continuing operations | (444,279) | (783,316) | (1,586,097) | (1,408,297) |
| Discontinued Operations: | ||||
| (Loss) income from discontinued operations, net of tax | (293,264) | 1,602,881 | (651,832) | 2,690,566 |
| less: Loss (income) attributable to noncontrolling interest from discontinued operations | (74,863) | 49,303 | (112,744) | (12,925) |
| (218,401) | 1,553,578 | (539,088) | 2,703,491 | |
| Loss on disposal, net tax | (2,066,624) | -- | (2,066,624) | -- |
| (Loss) income attributable to Zoom Technologies, Inc. from discontinued operations | (2,285,025) | 1,553,578 | (2,605,712) | 2,703,491 |
| Net (loss) income attributable to Zoom Technologies, Inc. | $ (2,729,304) | $ 770,262 | $ (4,191,809) | $ 1,295,194 |
| Basic and diluted loss per common share from continuing operations: | ||||
| Basic | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
| Diluted | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) |
| Basic and diluted (loss) income per common share from discontinued operations: | ||||
| Basic | $ (0.08) | $ 0.06 | $ (0.09) | $ 0.11 |
| Diluted | $ (0.08) | $ 0.06 | $ (0.09) | $ 0.11 |
| Basic and diluted (loss) income per common share | ||||
| Basic | $ (0.09) | $ 0.03 | $ (0.14) | $ 0.05 |
| Diluted | $ (0.09) | $ 0.03 | $ (0.14) | $ 0.05 |
| Weighted average common shares outstanding: | ||||
| Basic | 29,525,168 | 26,191,186 | 29,496,715 | 25,075,087 |
| Diluted | 29,525,168 | 26,233,271 | 29,496,715 | 25,127,366 |
| ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
|
THREE MONTHS ENDED JUNE 30, |
SIX MONTHS ENDED JUNE 30, |
|||
| 2013 | 2012 | 2013 | 2012 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Net (loss) income attributable to Zoom Technologies, Inc. | $ (2,729,304) | $ 770,262 | $ (4,191,809) | $ 1,295,194 |
| Net income (loss) attributable to noncontrolling interest | $ 182,194 | $ 193,717 | $ (7,560) | $ 371,231 |
| Other comprehensive income: | ||||
| Foreign currency translation gain - Zoom Technologies, Inc. | 446,562 | 80,139 | 778,435 | 389,717 |
| Foreign currency translation gain - noncontrolling interest | 111,641 | 2,620 | 194,609 | 23,893 |
| Comprehensive (loss) income Zoom Technologies, Inc. | $ (2,282,742) | $ 850,401 | $ (3,413,374) | $ 1,684,911 |
| Comprehensive income noncontrolling interest | $ 293,835 | $ 196,337 | $ 187,049 | $ 395,124 |
| ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
|
SIX MONTHS ENDED JUNE 30, |
||
| 2013 | 2012 | |
| (Unaudited) | (Unaudited) | |
| Cash flows from operating activities: | ||
| Net (loss) income attributable to Zoom Technologies, Inc. | $ (4,191,809) | $ 1,295,194 |
| Adjustments to reconcile net (loss) income attributable to Zoom Technologies Inc. to cash provided by (used in) operating activities: | ||
| (Loss) income attributable to noncontrolling interest of continuing operations | 105,184 | 384,156 |
| Loss attributable to noncontrolling interest from discontinued operations | (112,744) | (12,925) |
| Income (loss) attributable to Zoom Technologies, Inc. from discontinued operations | 651,832 | (2,690,566) |
| Depreciation and amortization | 150,337 | 192,340 |
| Non-cash equity-based compensation | 645,665 | 1,271,559 |
| Provision on accounts receivable | 120,000 | 9,047 |
| Loss on disposal | 2,066,624 | -- |
| Loss on investment in joint venture | 333,641 | -- |
| Fair value adjustment on warrants | (7,336) | (233,370) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (218,052) | (1,236,873) |
| Inventories | 597,144 | (250,019) |
| Advances to suppliers | (8,111) | -- |
| Prepaid expenses and other assets | 1,056,213 | 7,908 |
| Accounts payable | (1,708,143) | (3,758,700) |
| Related parties-net | (369,652) | 860,890 |
| Accrued expenses and other current liabilities | (494,775) | 1,845,579 |
| Net cash used in operating activities | (1,383,982) | (2,315,780) |
| Cash flows from investing activities: | ||
| Purchase of property and equipment and other long-term assets | (123,256) | (150,417) |
| Net cash used in investing activities | (123,256) | (150,417) |
| Cash flows from financing activities: | ||
| Proceeds from loans | 2,500,000 | 2,043,055 |
| Repayment of loans | (702,299) | -- |
| Receipt from related parties | 55,080 | 433,604 |
| Payments to related parties | (27,287) | (155,177) |
| Net cash provided by financing activities | 1,825,494 | 2,321,482 |
| Effect of exchange rate changes on cash & equivalents | (214) | 139,022 |
| Net increase (decrease) in cash and equivalents | 318,042 | (5,693) |
| Cash and equivalents, beginning of period | 430,746 | 214,684 |
| Cash and equivalents, end of period | $ 748,788 | $ 208,991 |
| SUPPLEMENTARY DISCLOSURES: | ||
| Interest paid | $ 1,441,267 | $ 929,846 |
| Income tax paid | $ 109,517 | $ 116,122 |
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
