First Quarter 2013 Highlights:
- Revenue for the first quarter of 2013 was $7.4 million a decrease of $8.7 million, or 54.2%, from $16.1 for the same quarter last year
- Loss from continuing operations $1.1 million for the quarter compared to $0.6 million a year ago
- Net loss of $1.5 million compared to net income of $0.5 million in same quarter last year
- Net loss in the quarter resulted from a slow economy and the continued restructuring of the Company's business
BEIJING, May 20, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc. (Nasdaq:ZOOM) (the "Company"), a holding company, through its subsidiary Portables Unlimited LLC ("Portables"), engages in the distribution of cellular service and products in the U.S. Today, ZOOM reported financial results for the first quarter ended March 31, 2013.
For the first quarter of 2013, ZOOM reported weak performance as a result of a sluggish economy and also that more desirable handsets did not arrive into the T-Mobile product line-up within the quarter. Management believes that operational results should noticeably improve after March 31, 2013 due to a combination of the availability of coveted models, including the iPhone5 in April 2013, and the roll out by T-Mobile of new pricing programs for cellular usage. Also, Zoom's internal restructuring should be completed within the first half of 2013, and the Company will be better positioned to return to profitability.The Company's management devoted significant effort in the first quarter of 2013 to complete the sale of certain operating units to Beijing Zhumu Culture Communication Company, Ltd. as detailed in the Company's 8-K filing with the US SEC dated January 7, 2013. The completion of the sale of those operating units is still pending; however, management believes that the sale should be completed around the middle of 2013. As previously disclosed, ZOOM intends to use the proceeds from the sale of those operating units to acquire businesses in North America. Concurrently, management has been conducting initial diligence and valuation exercise on potential acquisition targets.