UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 30, 2004
Zoom Technologies, Inc.
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(Exact Name Of Registrant As Specified In Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-18672 51-0448969
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(Commission File Number) (I.R.S. Employer Identification No.)
207 South Street, Boston, MA 02111
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(Address of Principal Executive Offices) (Zip Code)
(617) 423-1072
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(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit Number Description
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99.1 Press release dated April 30, 2004 of Zoom Technologies,
Inc. (the "Company") announcing its financial results for
the First quarter ended December 31, 2003.
Item 12. Results of operations and financial condition.
On April 30, 2004, the Company issued a press release announcing its
financial results for the First quarter ended March 31, 2004. A copy of the
press release is attached hereto as Exhibit 99.1 and is incorporated herein in
its entirety by reference.
Limitation on Incorporation by Reference. The information furnished in this
Item 12 shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of
that section, nor shall such information be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements. Except for historical
information contained in the press release attached as an exhibit hereto, the
press release contains forward-looking statements which involve certain risks
and uncertainties that could cause actual results to differ materially from
those expressed or implied by these statements. Please refer to the cautionary
note in the press release regarding these forward-looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 30, 2004 ZOOM TECHNOLOGIES, INC.
By: /s/ Robert A. Crist
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Robert A. Crist, Chief
Financial Officer
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press release dated April 30, 2004 of Zoom Technologies,
Inc. (the "Company") announcing its financial results for
the First quarter ended March 31, 2004.
EXHIBIT 99.1
Zoom Technologies Reports Results for the First Quarter of 2004
Boston, April 30, 2004 -Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading
manufacturer of modems and other data communication products, today reported net
sales of $7.8 million for the first quarter of 2004, up 3.4% from $7.5 million
for the first quarter of 2003. Zoom's ADSL modem sales continued to grow,
offsetting the decline in dial-up modem sales.
Zoom reported a net loss of $504 thousand or $.06 per diluted share for its
first quarter ending March 31, 2004, an improvement over Zoom's net loss of $840
thousand or $.11 per diluted share in the first quarter of 2003, due primarily
to improved gross profit and reduced operating expenses.
Gross profit was $2.3 million or 29.7% of net sales in the first quarter of
2004, up from $2.1 million or 28.5% of net sales in the first quarter of 2003.
The improved gross profit dollars and percentage reflect product cost
reductions.
Operating expenses were $2.9 million or 36.7% of net sales in the first
quarter of 2004 compared to $3.1 million or 40.7% of net sales in the first
quarter of 2003. Operating expenses were improved primarily due to lower
personnel-related costs.
Zoom's cash balance on March 31, 2004 was $9.0 million, down from $9.9
million on December 31, 2003. During the quarter the exercise of stock options
by Zoom employees added $0.6 million to Zoom's cash balance. On March 31, 2004
Zoom's current ratio was 5.7.
"We are encouraged by the ongoing growth of our ADSL modem sales during the
quarter," said Frank Manning, Zoom's President and CEO. "This was our tenth
consecutive quarter with ADSL modem growth, and ADSL represented 29% of net
sales for the quarter. The dial-up modem after-market remains difficult as many
retailers continue to reduce shelf space. We remain excited about our upcoming
VoIP "voice over the Internet" products, and we believe Zoom has important
advantages including our strength in telephony, our international distribution,
and our ability to offer a strong customer experience including hardware
integrated with our Global Villagetm VoIP service. Global Village is a telephone
service developed by Zoom as an alternative to, for instance, the popular Vonage
VoIP service. Global Village will let customers make free calls to anywhere in
the world where someone has a Zoom VoIP product or another compatible VoIP phone
service. In addition, our Global Village service will include an optional
service for making low-cost phone calls from Zoom's VoIP equipment to any phone,
anywhere in the world, that can be reached by a regular phone call."
Zoom has scheduled a Q1 2004 earnings conference call for Friday, April
30th at 5:00 p.m. Eastern Time. You may access the conference call by dialing
(800) 915-4836 for calls made within the United States and dialing (973)
317-5319 for calls outside the United States. The call will also be simulcast to
stock analysts and other interested parties on Zoom's website (www.zoom.com/Q1)
and other financial and investor-oriented websites via the CCBN / StreetEvents
network. Shortly after the conference call, a recorded broadcast will be
available on Zoom's website. For additional information, please contact Investor
Relations, Zoom Technologies, 207 South Street, Boston, MA 02111, telephone
(617) 423-1072, email investor@zoom.com, or visit Zoom's website at
www.zoom.com.
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This release contains forward-looking information relating to Zoom's plans,
expectations and intentions, including statements relating to Zoom's plans to
introduce new products including VoIP products and service, and the
characteristics, advantages and potential success of such products and services.
Actual results may be materially different from those expectations as a result
of known and unknown risks, including Zoom's potential future losses; Zoom's
ability to obtain additional financing for working capital and other purposes;
Zoom's prospects in the dial-up modem market, which has the potential for
reduced sales, lower margins, and less favorable selling terms; the uncertainty
of market growth of cable and ADSL modem markets, and the uncertainty of Zoom's
ability to more successfully penetrate those markets, which have been
challenging markets with significant barriers to entry; Zoom's ability to
effectively manage its inventory; uncertainty of new product development and
introduction, including budget overruns, project delays and the risk that newly
introduced products may contain undetected errors or defects or otherwise not
perform as anticipated, and other delays in shipments of products; Zoom's
dependence on one or a limited number of suppliers for certain key components;
rapid technological change; competition; 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 the Zoom's expectations or any change in events, conditions or
circumstance on which any such statement is based.
ZOOM TECHNOLOGIES, INC.
Consolidated Balance Sheets
In thousands
(Audited)
Mar 31, Dec 31,
2004 2003
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Assets
Current assets:
Cash $ 9,049 $ 9,904
Accounts receivable, net 4,134 3,945
Inventories, net 5,568 4,771
Prepaid expenses and other 459 435
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Total current assets 19,210 19,055
Property and equipment, net 2,829 2,919
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Total assets $22,039 $21,974
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,932 $ 2,172
Accrued expenses 1,194 1,012
Current portion of long-term debt 226 224
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Total current liabilities 3,352 3,408
Long-term debt 5,039 5,096
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Total liabilities 8,391 8,504
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Stockholders' equity:
Common stock and additional paid-in capital 29,152 28,581
Treasury stock (7) (7)
Accumulated other comprehensive
income (loss) 445 334
Retained earnings (deficit) (15,942) (15,438)
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Total stockholders' equity 13,648 13,470
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Total liabilities &
Stockholders' equity $22,039 $21,974
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ZOOM TECHNOLOGIES, INC.
Consolidated Statements of Operations
In thousands,except per share data
(Audited)
Three Months Ending
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03/31/04 03/31/03
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Net sales $7,792 $ 7,539
Cost of goods sold 5,480 5,394
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Gross profit 2,312 2,145
Operating expenses:
Selling 1,226 1,362
General and administrative 954 958
Research and development 678 752
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Total operating expenses 2,858 3,072
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Operating profit (loss) (546) (927)
Other income (expense), net 42 87
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Income(loss) before income taxes (504) (840)
Income tax expense(benefit) - -
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Income (loss) before extraordinary gain (504) (840)
Extraordinary gain - -
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Net income (loss) $ (504) $ (840)
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Basic earnings (loss) per share:
Earnings (loss) per share $(0.06) $(0.11)
Diluted earnings (loss) per share:
Earnings (loss) per share $(0.06) $(0.11)
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Weighted average number of shares outstanding:
Basic 8,135 7,853
Diluted 8,135 7,853
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