Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - MINIM, INC. | zmtp_8k.htm |
Exhibit 99.1
Zoom Telephonics Reports Third Quarter 2020 Results
Revenue of $12.0M, the Highest Quarterly Revenue for Zoom
Telephonics (OTCQB: ZMTP) to Date
Boston,
MA, November 12, 2020 – Zoom Telephonics, Inc.
(“Zoom”) (OTCQB: ZMTP), the creator of leading cable
modems and other Internet access products under the exclusively
licensed Motorola® brand, reported financial results for its
2020 third quarter ended September 30, 2020.
●
Net revenue of
$12.0M, the highest quarterly revenue for ZMTP to date,
representing an 11% increase compared to the same quarter in 2019,
and a 17% increase sequentially from Q2 2020.
●
GAAP Operating Loss
of ($332k), or -2.8% of net revenue, representing a ($94k)
difference compared to the same quarter in 2019, but a $1.2M
improvement sequentially from Q2 2020.
●
Earnings per share
of $(0.01), flat in the third quarter of 2019, but represents a 86%
improvement sequentially from Q2 2020.
“We
are very pleased with this quarter’s results and believe that
we are now on a clear path to achieving scale and
profitability,” said Jackie Barry Hamilton, CFO of Zoom.
“Our balance sheet and cash position are strong; benefiting
from a recent PIPE, and we have maintained our working capital
levels despite challenges associated with the
pandemic.”
Business Outlook
“Our
research shows Zoom is holding its position as one of the top three
leaders in modems, gateways, and MoCA devices by retail market
share,” said Jeremy Hitchcock, Executive Chairman of
Zoom’s Board of Directors. “We are seeing strong market
tailwinds in home connectivity, underscored in a 45% increase in
retailer inventory demand from this time last year. Our inventory
position is actively being rebuilt as manufacturing capacity ramps
in Vietnam to meet increased customer demand, without
tariffs.”
Separately,
Zoom today announced that it had reached a definitive agreement to
merge with Minim Inc., a private AI-driven WiFi management and
security platform.
Conference Call Details Date/Time:
Join us
on November 13th, 10:00 a.m. ET Participant Dial-In
Numbers:
(United
States): (877) 706-2128 (International): (706)
643-5255.
Please
dial-in five minutes prior to the start time of the call and
provide the operator with the conference ID of
4558846.
A slide
presentation will accompany management’s remarks and will be
accessible five minutes prior to the start of the call via the
following link: www.zoom.net/SQ320. A recording of the call will
also be made available afterwards through the investor information
section of the company’s website.
About Zoom Telephonics
Zoom
Telephonics, Inc. (“Zoom”) (OTCQB: ZMTP) is the creator
of innovative Internet access products that dependably connect
people to the information they need and the people they love.
Founded in 1977 in Boston, MA, the company now delivers cable
modems, routers, and other communications products under the
globally recognized Motorola brand. For more information about Zoom
and its products, please visit www.zoom.net and
www.motorolanetwork.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 increase in tariffs on
the company's imports; potential difficulties and supply
interruptions from moving the manufacturing of most of the
company’s products to Vietnam; potential changes in NAFTA;
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, including certification and
overall project delays, budget overruns, 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.
Investor Relations Contact:
Jacquelyn
Barry Hamilton, CFO Zoom Telephonics, Inc.
Phone:
617-753-0040
Email:
Investor@zoom.net
ZOOM
TELEPHONICS, INC.
Condensed
Consolidated Balance
Sheets
|
ASSETS
|
September
30,
2020
(Unaudited)
|
December
31,
2019
|
|
Current assets
|
|
|
|
Cash
and cash equivalents
|
$4,013,690
|
$1,216,893
|
|
Restricted
cash
|
800,000
|
150,000
|
|
Accounts
receivable, net
|
6,577,447
|
4,070,576
|
|
Inventories,
net
|
9,693,326
|
7,440,350
|
|
Prepaid
expenses and other current assets
|
128,847
|
269,738
|
|
Total
current assets
|
21,213,310
|
13,147,557
|
|
|
|
|
|
Other
assets
|
914,884
|
349,335
|
|
Operating
lease right-of-use assets, net
|
107,343
|
102,716
|
|
Equipment,
net
|
460,534
|
303,099
|
|
Total
assets
|
$22,696,071
|
$13,902,707
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current liabilities
|
|
|
|
Accounts
payable
|
$10,513,620
|
$5,024,529
|
|
Current
maturities of long-term debt
|
354,968
|
––
|
|
Current
maturities of operating lease liabilities
|
72,739
|
102,716
|
|
Accrued
expenses
|
4,015,666
|
2,666,471
|
|
Total
current liabilities
|
$14,956,993
|
$7,793,716
|
|
|
|
|
|
Long-term
debt, less current maturities
|
228,332
|
––
|
|
Operating
lease liabilities, less current maturities
|
34,738
|
––
|
|
Total
liabilities
|
$15,220,063
|
$7,793,716
|
|
|
|
|
|
Commitments
and contingencies (Notes 4 and 5)
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
Common
stock: Authorized: 40,000,000 shares at $0.01 par
value
|
|
|
|
Issued
and outstanding: 23,921,142 shares at September 30, 2020 and
20,929,928 shares at December 31, 2019
|
239,211
|
209,299
|
|
Additional
paid in capital
|
50,454,720
|
46,496,330
|
|
Accumulated
deficit
|
(43,217,923)
|
(40,596,638)
|
|
Total
stockholders' equity
|
7,476,008
|
6,108,991
|
|
Total
liabilities and stockholders' equity
|
$22,696,071
|
$13,902,707
|
ZOOM
TELEPHONICS, INC.
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
Net
sales
|
$12,027,457
|
$10,874,149
|
$34,255,817
|
$27,042,961
|
|
Cost
of goods sold
|
8,150,901
|
7,746,821
|
25,160,174
|
18,728,928
|
|
Gross
profit
|
3,876,556
|
3,127,328
|
9,095,643
|
8,314,033
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
2,012,314
|
2,067,728
|
6,650,047
|
7,068,841
|
|
General
and administrative
|
1,468,187
|
733,486
|
3,012,292
|
1,858,043
|
|
Research
and development
|
728,258
|
563,881
|
2,025,502
|
1,484,160
|
|
Total
operating expenses
|
4,208,759
|
3,365,095
|
11,687,841
|
10,411,044
|
|
|
|
|
|
|
|
Operating
loss
|
(332,203)
|
(237,767)
|
(2,592,198)
|
(2,097,011)
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
Interest
income
|
272
|
5,626
|
1,064
|
9,627
|
|
Interest
expense
|
(5,420)
|
––
|
(13,852)
|
(48,405)
|
|
Other,
net
|
(1,150)
|
36,156
|
(707)
|
34,251
|
|
Total
other income (expense)
|
(6,298)
|
41,782
|
(13,495)
|
(4,527)
|
|
|
|
|
|
|
|
Loss
before income taxes
|
(338,501)
|
(195,985)
|
(2,605,693)
|
(2,101,538)
|
|
|
|
|
|
|
|
Income
taxes
|
2,920
|
3,641
|
15,592
|
24,319
|
|
|
|
|
|
|
|
Net
loss
|
$(341,421)
|
$(199,626)
|
$(2,621,285)
|
$(2,125,857)
|
|
|
|
|
|
|
|
Net
loss per share:
|
|
|
|
|
|
Basic
and diluted
|
$(0.01)
|
$(0.01)
|
$(0.12)
|
$(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted weighted average common and common equivalent
shares
|
23,887,718
|
20,832,174
|
22,419,823
|
18,696,083
|
ZOOM
TELEPHONICS, INC.
Condensed
Consolidated Statements of Cash
Flows
(Unaudited)
|
|
Nine
Months Ended
September 30,
|
|
|
|
2020
|
2019
|
|
Cash flows from operating
activities:
|
|
|
|
Net
loss
|
$(2,621,285)
|
$(2,125,857)
|
|
|
|
|
|
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation
and amortization
|
139,940
|
252,471
|
|
Amortization
of right-of-use assets
|
91,572
|
268,155
|
|
Stock
based compensation
|
282,042
|
432,044
|
|
(Recovery
of) provision for accounts receivable allowances
|
(102,632)
|
8,549
|
|
Provision
for inventory reserves
|
19,781
|
19,983
|
|
Changes
in operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
(2,404,239)
|
(1,996,450)
|
|
Inventories
|
(2,272,757)
|
1,565,903
|
|
Prepaid
expenses and other current assets
|
140,891
|
533,486
|
|
Operating
lease liabilities
|
(91,438)
|
(293,489)
|
|
Accounts
payable and accrued expenses
|
6,838,286
|
494,221
|
|
Net
cash provided by (used in) operating activities
|
20,161
|
(839,984)
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
Certification
and software costs incurred and capitalized
|
(608,384)
|
(135,000)
|
|
Purchases
of equipment
|
(254,540)
|
(120,715)
|
|
Net
cash used in investing activities
|
(862,924)
|
(255,715)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
Net
payments on bank credit lines
|
––
|
(1,741,272)
|
|
Proceeds
from debt
|
583,300
|
––
|
|
Net
proceeds from private placement offering
|
3,163,370
|
4,942,609
|
|
Proceeds
from stock option exercises
|
542,890
|
48,200
|
|
Net
cash provided by financing activities
|
4,289,560
|
3,249,537
|
|
|
|
|
|
Net
increase in cash, cash equivalents, and restricted
cash
|
3,446,797
|
2,153,838
|
|
|
|
|
|
Cash,
cash equivalents, and restricted cash- Beginning
|
1,366,893
|
125,982
|
|
|
|
|
|
Cash,
cash equivalents, and restricted cash- Ending
|
$4,813,690
|
$2,279,820
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash
paid during the period for:
|
|
|
|
Interest
|
$13,852
|
$48,405
|
|
Income
taxes
|
$15,592
|
$24,319
|
|
The
following table provides a reconciliation of cash, cash equivalents
and restricted cash reported within the Condensed Consolidated
Balance Sheets to the total of the same such amounts shown
above:
|
|
|
|
Cash
and cash equivalents
|
$4,013,690
|
$2,129,820
|
|
Restricted
cash
|
800,000
|
150,000
|
|
Total
cash, cash equivalents and restricted cash
|
$4,813,690
|
$2,279,820
|