Attached files
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| 8-K - CURRENT REPORT - MINIM, INC. | zmtp_8k.htm |
Exhibit 99.1
Zoom Telephonics Reports 191% Sales Increase for Q4
2016
Boston, MA, March 2,
2017 – Zoom Telephonics,
Inc. (“Zoom”) (OTCQB: ZMTP), a leading producer of
cable modems and other communication products, today reported
financial results for the fourth quarter and year ended December
31, 2016.
The
Company reported net sales of $5.1 million for the fourth quarter
ended December 31, 2016 (“Q4 2016”), up 191% from $1.8
million for the fourth quarter ended December 31, 2015 (“Q4
2015”). Zoom reported a net loss of $990 thousand or $0.07
per share for Q4 2016 compared to a net loss of $724 thousand or
$0.05 per share for Q4 2015.
Gross
profit was $1.4 million or 27.3% of net sales in Q4 2016, compared
to $0.5 million or 27.8% of net sales in Q4 2015. The
increase in gross profit in Q4 2016 was due to increased sales,
particularly for Motorola brand cable modems and gateways. Gross
margin percentage declined because of a $171 thousand write-down of
inventory for select products due to negotiation of lower costs for
those products.
Operating
expenses were $2.3 million, or 45.5% of net sales in Q4 2016,
compared to $1.2 million or 67.9% of net sales in Q4 2015. Selling
expenses increased $1.3 million to $1.7 million from Q4 2015 to Q4
2016 due primarily to Motorola trademark costs, new in 2016, and
increased advertising expenses. General and administrative expenses
decreased $114 thousand to $305 thousand from Q4 2015 to Q4 2016
due primarily to reduced FCC-related legal expenses and reduced
personnel and stock option costs. Research and development expenses
decreased $56 thousand to $368 thousand from Q4 2015 to Q4 2016 due
primarily to reductions in testing and certification
expenses.
Zoom’s net sales of $17.8 million for the
fiscal year ended December 31, 2016 (“FY 2016”) were up
65.3% from $10.8 million for the fiscal year ended December 31,
2015 (“FY 2015”). Zoom reported a net loss of $2.9
million or $0.21 per share for FY 2016 compared to a net loss of
$833 thousand or $0.09 per share for FY 2015. Gross profit was $5.4
million for FY 2016, up $2.0 million from $3.4 million for FY 2015.
Gross margin was down slightly to 30.1% in FY 2016 from 31.5% in FY
2015 due primarily to increased amortization of certification costs
associated with new products.
Operating
expenses were $8.3 million, or 46.3% of net sales in FY 2016, up
from $4.1 million or 38.4% of net sales in FY 2015. Selling
expenses increased $3.6 million to $5.2 million from FY 2015 to FY
2016 due primarily to Motorola trademark costs and increased
advertising expenses. General and administrative expenses increased
$312 thousand to $1.5 million from FY 2015 to FY 2016, primarily
due to increased personnel and stock option costs, and increased
audit and legal expenses. Research and development expenses
increased $180 thousand to $1.5 million from FY 2015 to FY 2016,
primarily due to increased personnel costs.
Zoom
raised gross proceeds of approximately $1.6 million in a private
placement of common stock in October 2016. On December 31, 2016
Zoom had $1.3 million drawn on a $3 million line of bank credit,
working capital of $3.4 million, and a current ratio of
1.7.
“We are pleased with the sales growth we are experiencing due
to our line of high-performance Motorola brand cable modems, strong
customer reviews for these products, and significant
advertising,” said Frank Manning, Zoom’s President and
CEO. “During 2016 we dramatically grew our share of cable
modem sales through Amazon, and Amazon remains a major focus.
Another focus is growing our shelf space in the best retail stores,
and we’re very pleased that in February 2017 we shipped our
third Motorola cable modem product to Best Buy stores. We continue
to develop exciting new cable modem products, including our first
product for the new DOCSIS 3.1 cable modem standard. In January
2017 our China master distributor began selling our first Motorola
router for China. In 2017 we plan to introduce a line of routers,
range extenders, and powerline communication adapters consistent
with our worldwide Motorola licensing agreement for cable modems
and gateways, WiFi routers, range extenders, and other consumer
network products. Besides introducing new cable modem and WiFi
products, we expect to launch some innovative sensor products later
this year. Our focus will remain on growing our sales while trying
to reduce our expenses as a percentage of sales. We are proud of
our accomplishments in 2016, and looking forward to continued
growth in 2017.”
Conference Call
Zoom
has scheduled a conference call for Thursday, March 2nd 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 75356610. A slide
presentation will accompany management’s remarks and may be
accessed five minutes before the conference call at
www.zoomtel.com/s4. Shortly after the conference call a recording
of the call will be available on Zoom’s website at
www.zoomtel.com/r4.
About Zoom Telephonics
Founded
in 1977 in Boston, Zoom Telephonics, Inc. designs, produces,
markets, and supports cable modems and other communication
products. 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 customers’ 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.
Company Contact:
Zoom Telephonics
Investor Relations
99 High Street
Boston, MA 02110
617-753-0897
investor@zoomtel.com
Investor Relations Contact:
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: 203-972-9200
jnesbett@institutionalms.com
ZOOM TELEPHONICS, INC.
Condensed Balance Sheets
In thousands
(Unaudited)
|
|
12/31/16
|
12/31/15
|
|
|
|
|
|
ASSETS
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|
|
|
|
|
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|
Current assets:
|
|
|
|
|
|
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Cash
|
$180
|
$1,847
|
|
Accounts
receivable, net
|
2,498
|
1,079
|
|
Inventories,
net
|
4,927
|
2,785
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|
Prepaid
expenses and other
|
652
|
381
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|
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Total
current assets
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8,257
|
6,092
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Property and equipment, net
|
176
|
205
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|
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Other assets
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589
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573
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Total
assets
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$9,022
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$6,870
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Bank
debt
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$1,307
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$––
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Accounts
payable
|
2,502
|
1,423
|
|
Accrued
expenses
|
1,052
|
293
|
|
|
|
|
|
Total
current liabilities
|
4,861
|
1,716
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|
|
|
|
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Total
liabilities
|
4,861
|
1,716
|
|
|
|
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Stockholders’ equity:
|
|
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|
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Common
stock and additional paid-in capital
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40,041
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38,100
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Retained
earnings (accumulated deficit)
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(35,880)
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(32,946)
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|
|
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|
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Total
stockholders’ equity
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4,161
|
5,154
|
|
|
|
|
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Total
liabilities and stockholders’ equity
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$9,022
|
$6,870
|
ZOOM TELEPHONICS, INC.
Condensed Statements of Operations
In thousands, except for per share data
(Unaudited)
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|
Three Months Ended
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Twelve Months Ended
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||
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12/31/16
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12/31/15
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12/31/16
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12/31/15
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Net sales
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$5,146
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$1,771
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$17,834
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$10,790
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Cost of goods sold
|
3,739
|
1,278
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12,467
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7,388
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|
|
|
|
|
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Gross
profit
|
1,407
|
493
|
5,367
|
3,402
|
|
|
|
|
|
|
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Operating expenses:
|
|
|
|
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Selling
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1,668
|
360
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5,188
|
1,571
|
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General
and administrative
|
305
|
419
|
1,541
|
1.229
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|
Research
and development
|
368
|
424
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1,522
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1,342
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Total
operating expenses
|
2,341
|
1,203
|
8,251
|
4,142
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|
|
|
|
|
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Operating
profit (loss)
|
(934)
|
(710)
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(2,884)
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(740)
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|
|
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Other income (expense), net
|
(52)
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(12)
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(42)
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(86)
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Income
(loss) before income taxes
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(986)
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(722)
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(2,926)
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(826)
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|
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Income tax expense
|
4
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2
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7
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7
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|
|
|
|
|
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Net
income (loss)
|
$(990)
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$(724)
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$(2,933)
|
$(833)
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|
|
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Earnings (loss) per share:
|
|
|
|
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Basic
Earnings (loss) per share
|
$(0.07)
|
$(0.05)
|
$(0.21)
|
$(0.09)
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|
Diluted
Earnings (loss) per share
|
$(0.07)
|
$(0.05)
|
$(0.21)
|
$(0.09)
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Weighted average number of shares outstanding:
|
|
|
|
|
|
Basic
|
14,460
|
13,340
|
13,908
|
9,471
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|
Diluted
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14,460
|
13,340
|
13,908
|
9,471
|