Attached files
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| 8-K/A - AMENDED FORM 8-K - MINIM, INC. | zmtp_8ka.htm |
Exhibit
99.1
Zoom®
Telephonics Reports Significant Sales Growth For Q3
2016
Boston, MA, November 1, 2016 - Zoom
Telephonics, Inc. (“Zoom”) (OTCQB: ZMTP), a leading
producer of cable modems and other communications products, today
reported financial results for the third quarter and nine months
ended September 30, 2016.
Zoom
reported net sales of $5.99 million for the third quarter ended
September 30, 2016 (“Q3 2016”), up 77.9% from $3.37
million for the quarter ended September 30, 2015 (“Q3
2015”) and up 50.6% from $3.98 million for the quarter ended
June 30, 2016 (“Q2 2016”). The sequential rise in sales
from Q2 2016 to Q3 2016 was primarily due to increased sales for
three Motorola brand products introduced by Zoom's MTRLC LLC
subsidiary in Q1 2016.
Gross
profit was $1.93 million or 32.1% of net sales in Q3 2016, versus
$1.10 million or 32.7% of net sales in Q3 2015, and $1.20 million
or 30.2% of net sales in Q2 2015. The significant sequential
increase in gross profit was due to increased sales of Motorola
brand cable modems.
Operating expenses were $2.18 million or 36.4% of net sales in Q3
2016 compared to $1.08 million or 32.0% of net sales in Q3 2015 and
$2.17 million or 54.5% of net sales in Q2 2016. Q3 2016 operating
expenses increased over Q3 2015 operating expenses primarily due to
Motorola brand royalty payments which began in 2016, increases in
marketing and advertising costs to support Motorola brand products,
and increases in personnel related primarily to Motorola brand
cable modems. Q3 2016 operating expenses were almost identical to
Q2 2016 operating expenses, as advertising, commission, and
sales-related freight costs rose while engineering certification
costs fell.
Zoom
reported a net loss of $244 thousand or $0.02 per share for Q3
2016, compared to a net loss of $8 thousand or $0.00 per share for
Q3 2015 and a net loss of $972 thousand or $0.07 per share for Q2
2016.
Zoom's
cash balance on September 30, 2016 was $175 thousand. Subsequent to
the close of the quarter, Zoom raised gross proceeds of
approximately $1.6 million in a private placement. As of September
30, 2016, Zoom had $2.14 million outstanding in bank debt on a line
of credit that was recently increased to a maximum of $3.0 million.
Zoom had working capital of $2.9 million and a current ratio of 1.6
on September 30, 2016.
“In Q3 2016 we continued a significant ramp in sales due to
our Motorola brand cable modems,” said Frank Manning, Zoom's
President and CEO. “We expanded our shelf space in major
retailers during Q3 2016, and shipped our fifth major Motorola
brand cable modem by the end of Q3 2016. We also continued to grow
our Amazon sales. During the quarter an independent lab's test
confirmed the superior WiFi performance of our MG7550 16x4 AC1900
cable gateway when compared to AC1900 cable gateways from Arris and
Netgear. In August 2016 we announced a major expansion of our
Motorola brand license so that our trademark rights now include
worldwide rights for cable modems and gateways plus WiFi routers,
range extenders, access points, and other WiFi products. We are
making good progress in development of new cable modems, a WiFi
router, a range extender, and a line of cellular data
products.”
Zoom
has scheduled a conference call for Tuesday, November 1 at 5:00
p.m. Eastern Time. You may access the conference call by dialing
(877) 706-2128 if you are in the USA, and international callers may
dial (706) 643-5255. The conference ID is 4049989. A slide
presentation will accompany managementís remarks and may be
accessed five minutes before the conference call at www.zoomtel.com/s3. Shortly
after the conference call a recording of the call will be available
on Zoom's website at www.zoomtel.com/r3.
For
additional information, please contact Investor Relations at Zoom
Telephonics Inc., 99 High Street, Boston, MA 02110, telephone (617)
753-0897, email investor@zoomtel.com; or visit
Zoomís website at www.zoomtel.com/investor.
About Zoom Telephonics
Founded
in 1977 in Boston, Zoom Telephonics, Inc. designs, produces,
markets, and supports modems and other communication products under
the Motorola, Zoom, and Hayes® brands. For more information
about Zoom and its products, please see
www.zoomtel.com
MOTOROLA
and the Stylized M Logo are trademarks or registered trademarks of
Motorola Trademark Holdings, LLC. and are used under
license.
###
Forward Looking Statements
This
release contains forward-looking information relating to Zoom's
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 customersí plans and orders; risks relating to product
certifications; Zoom's dependence on key employees; uncertainty of
new product development, including budget overruns, project delays,
and the risk that newly introduced products may contain undetected
errors or defects or otherwise not perform as anticipated; 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.
Condensed
Consolidated Balance Sheets
In
thousands
(Unaudited)
|
|
September 30, 2016
|
December 31, 2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
$175
|
$1,847
|
|
Accounts
receivable, net
|
2,872
|
1,079
|
|
Inventories,
net
|
4,229
|
2,785
|
|
Prepaid expenses
and other
|
574
|
381
|
|
|
|
|
|
Total current
assets
|
7,850
|
6,092
|
|
|
|
|
|
Property
and equipment, net
|
174
|
205
|
|
|
|
|
|
Other
assets
|
542
|
573
|
|
|
|
|
|
Total
assets
|
$8,566
|
$6,870
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Bank
debt
|
$2,142
|
$––
|
|
Accounts
payable
|
1,852
|
1,423
|
|
Accrued
expenses
|
948
|
293
|
|
|
|
|
|
Total current
liabilities
|
4,942
|
1,716
|
|
|
|
|
|
Total
liabilities
|
4,942
|
1,716
|
|
|
|
|
|
Stockholders’
equity:
|
|
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
38,514
|
38,100
|
|
|
|
|
|
Retained earnings
(accumulated deficit)
|
(34,890)
|
(32,946)
|
|
|
|
|
|
Total
stockholders’ equity
|
3,624
|
5,154
|
|
|
|
|
|
Total liabilities
and stockholders’ equity
|
$8,566
|
$6,870
|
Condensed
Statements of Operations
In thousands, except for per share data
(Unaudited)
|
|
Three
Months Ended
|
Nine
Months Ended
|
||
|
|
9/30/16
|
9/30/15
|
9/30/16
|
9/30/15
|
|
|
|
|
|
|
|
Net
sales
|
$5,990
|
$3,368
|
$12,688
|
$9,019
|
|
Cost
of goods sold
|
4,065
|
2,268
|
8,728
|
6,110
|
|
|
|
|
|
|
|
Gross
profit
|
1,925
|
1,100
|
3,960
|
2,909
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
1,474
|
418
|
3,520
|
1,211
|
|
General and
administrative
|
354
|
307
|
1,236
|
810
|
|
Research and
development
|
353
|
354
|
1,155
|
918
|
|
Total
operating expenses
|
2,181
|
1,079
|
5,911
|
2,939
|
|
|
|
|
|
|
|
Operating
profit (loss)
|
(256)
|
21
|
(1,951)
|
(30)
|
|
|
|
|
|
|
|
Other
income (expense), net
|
14
|
(27)
|
10
|
(73)
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
(242)
|
(6)
|
(1,941)
|
(103)
|
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
2
|
2
|
3
|
6
|
|
|
|
|
|
|
|
Net income
(loss)
|
$(244)
|
$(8)
|
$(1,944)
|
$(109)
|
|
|
|
|
|
|
|
Earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
(loss) per share
|
$(0.02)
|
$0.00
|
$(0.14)
|
$(0.01)
|
|
Diluted Earnings
(loss) per share
|
$(0.02)
|
$0.00
|
$(0.14)
|
$(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
13,877
|
8,519
|
13,723
|
8,167
|
|
Diluted
|
13,877
|
8,519
|
13,723
|
8,167
|