Fourth Quarter 2012 Highlights:
- Revenue for the fourth quarter of 2012 was $10.1 million, a decrease of 24.9% over same quarter last year of $13.5 million
- Loss from continuing operations of $7.1 million for the quarter compared to $1.9 million
- Net loss of $34.5 million compared to net loss of $2.9 million in same quarter last year
- Net loss in the quarter resulted from disposition of our subsidiaries Profit Harvest and Celestial Digital Entertainment, impairment charges for the write down of goodwill related to Ever Elite, Nollec Wireless, and TCB Digital.
Full Year 2012 Highlights:
- Revenue increased by $36.3 million from $13.5 million to $49.8 million
- Sales of mobile handsets and accessories and commission from activation of services and residuals contributed $16.6 million and $33.2 million, respectively
- Net loss for 2012 was $32.5 million compared to net income of $6.4 million in 2011
BEIJING, April 15, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. (Nasdaq:ZOOM) (the "Company") is a holding company with a subsidiary that engages in the distribution of cellular service and products in the U.S. Today, ZOOM reported financial results for the fourth quarter and full year ended December 31, 2012.During the fourth quarter of 2012, ZOOM's management considered recent global economic conditions, industry trends and capital market conditions, and concluded that it is in the best interests of the Company to sell its operations in China. Therefore, the Company entered into a securities purchase agreement with Beijing Zhumu Culture Communication Company, Ltd. to sell ZOOM's manufacturing, research and development, mobile game development, and sales operations in China and Hong Kong for cash proceeds of $31.7 million. Please refer to our 10K Annual Report filed with the US SEC today for more details regarding the sale. ZOOM intends to use the proceeds from the sale to acquire businesses in North America with distribution channels for mobile products and consumer electronics. ZOOM expects to derive the majority of its revenue on a going forward basis from its operations in North America.