0001354488-12-005571.txt : 20121106 0001354488-12-005571.hdr.sgml : 20121106 20121106093637 ACCESSION NUMBER: 0001354488-12-005571 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20121101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121106 DATE AS OF CHANGE: 20121106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Zoom Telephonics, Inc. CENTRAL INDEX KEY: 0001467761 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 042621506 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-53722 FILM NUMBER: 121181911 BUSINESS ADDRESS: STREET 1: 207 SOUTH STREET CITY: BOSTON STATE: MA ZIP: 02111 BUSINESS PHONE: 617-423-1072 MAIL ADDRESS: STREET 1: 207 SOUTH STREET CITY: BOSTON STATE: MA ZIP: 02111 8-K 1 zmtp_8k.htm CURRENT REPORT zmtp_8k.htm


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) November 1, 2012
 
ZOOM TELEPHONICS, INC.
(Exact Name Of Registrant As Specified In Its Charter)
 
  Delaware    
  (State or Other Jurisdiction of Incorporation)  
 
000-53722    04-2621506
(Commission File Number)    (I.R.S. Employer Identification No.)
     
207 South Street, Boston, MA     02111
(Address of Principal Executive Offices)   (Zip Code)
 
   (617) 423-1072  
 
(Registrant’s Telephone Number, Including Area Code)
 
 
     
 
(Former Name or Former Address, if Changed Since Last Report)
 
                                                                        
    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




 
 

 
 
Item 2.02
Results of Operations and Financial Condition
 
On November 1, 2012, the Company issued a press release announcing its financial results for the third quarter ended September 30, 2012. 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 2.02 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.

Item 9.01
Financial Statements and Exhibits

 
(d)
Exhibits

Exhibit Number
 
Exhibit Description
99.1
 
Press release dated November 1, 2012 of Zoom Telephonics, Inc. announcing its financial results for the third quarter ended September 30, 2012.

 
 
2

 
 
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.
 
 
 
ZOOM TELEPHONICS, INC.
 
       
Dated: November 6, 2012
By:
/s/ Frank Manning   
    Frank Manning  
    President& CEO and Acting Chief Financial Officer  
       

 
 
3

 

EXHIBIT INDEX

Exhibit Number
 
Exhibit Description
99.1
 
Press release dated November 1, 2012 of Zoom Telephonics, Inc. announcing its financial results for the third quarter ended September 30, 2012.

 
 
 
4
 
 

EX-99.1 2 zmtp_ex991.htm PRESS RELEASE zmtp_ex991.htm
EXHIBIT 99.1
 


 
Zoom Telephonics Reports Results for the Third Quarter of 2012
 

Boston, MA, November 1, 2012 –Zoom Telephonics, Inc. (OTCQB: ZMTP), a leading manufacturer of modems and other communication products, today reported net sales of $3.4 million for the third quarter ended September 30, 2012, up 12.7% from $3.0 million for the third quarter of 2011.  Zoom reported a net loss of $155 thousand or $0.02 per share for Q3 2012, compared to a net loss of $265 thousand or $0.05 per share for Q3 2011.

Gross profit was $859 thousand or 25.0% of net sales in Q3 2012, up from gross profit of $759 thousand or 24.9% of net sales in Q3 2011.

Operating expenses were $993 thousand or 28.9% of net sales in Q3 2012, down slightly from $1.02 million or 33.6% of net sales in Q3 2011.  Selling expenses decreased $46 thousand to $431 thousand from Q3 2011 to Q3 2012 due primarily to lower freight costs and lower advertising costs.  G&A expenses decreased $15 thousand to $295 thousand from Q3 2011 to Q3 2012 due primarily to lower rent and related expenses after Zoom reduced its occupied space in Boston starting June 2012.  R&D expenses increased $31 thousand to $267 thousand from Q3 2011 to Q3 2012 due to increased firmware consulting costs to support new product development.

Zoom’s net sales of $11.2 million for the first three quarters of 2012 were up 24.6% from net sales of $9.0 million for the first three quarters of 2011. Zoom’s net loss was $0.5 million for the first three quarters of 2012 compared to a net loss of $0.9 million for the first three quarters of 2011.  The lower net loss for the first three quarters of 2012 was primarily due to an increase of $0.5 million in gross profit as a result of higher sales.

Zoom’s cash balance on September 30, 2012 was $178 thousand, down $466 thousand from December 31, 2011. Zoom’s $0.5 million increase in net accounts receivable, $0.5 million increase in net inventory and $0.4 million loss for the first nine months of 2012 decreased cash.  Zoom’s $0.8 million increase in bank debt increased cash as Zoom moved to minimize early-pay discounts and thereby increased the time to collect receivables.  Zoom’s current ratio was 2.4 on September 30, 2012.

“We are encouraged by our sales growth and improved operating results, but disappointed in the net loss for Q3 2012,” said Frank Manning, Zoom’s President and CEO.  “Our sales growth came primarily from our line of cable modem products, and our low margin for cable modem products  reduced our overall gross margin percentage. We expect to begin shipping a new cable modem in Q1 2013 that will improve our gross margin for cable modems.  Our sales should get a boost from Time Warner Cable’s recent decision to offer monthly savings starting this month to customers who purchase certified cable modems at retail.  We also continue to develop new products outside the cable modem area, including our coming ZoomGuardTM line of wireless sensors and controls.”

Zoom has scheduled a conference call for Friday, November 2 at 10:00 a.m. Eastern Time. You may access the conference call by dialing (866) 393-7958 and international callers may dial (706) 643-5255.  The conference ID is 61425505.  The call will also be simulcast to stock analysts and other interested parties on Zoom’s website, www.zoomtel.com/Q3, and to other financial and investor-oriented websites.  Shortly after the conference call, a recording of the call will be available on Zoom’s website.  For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 753-0897, email investor@zoomtel.com, or visit Zoom’s website at www.zoomtel.com

About Zoom Telephonics
Founded in 1977 in Boston, Zoom Telephonics, Inc. designs, produces, markets, and supports modems and other communication products under the Zoom, Hayes®, and Global Village® brands. For more information about Zoom and its products, please see www.zoomtel.com.
###

Forward Looking Statements
This release contains forward-looking information relating to Zoom Telephonics’ 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 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 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.
 
 
 
 

 

 
ZOOM TELEPHONICS, INC.
Condensed Balance Sheets
        In thousands
 
       (Unaudited)
 
   
9/30/12
   
12/31/11
 
             
ASSETS
           
             
Current assets:
           
             
Cash
  $ 178     $ 644  
Marketable securities
    70       82  
Accounts receivable, net
    1,877       1,399  
Inventories
    3,142       2,723  
Prepaid expenses and other
    171       186  
                 
Total current assets
    5,438       5,034  
                 
Property and equipment, net
    31       20  
                 
Total assets
  $ 5,469     $ 5,054  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
                 
Current liabilities:
               
Bank debt
  $ 796     $ --  
Accounts payable
    1,147       1,059  
Accrued expenses
    350       373  
                 
Total current liabilities
    2,293       1,432  
                 
Total liabilities
    2,293       1,432  
                 
Stockholders’ equity:
               
                 
Common stock and additional paid-in capital
    33,969       33,935  
Accumulated other comprehensive income (loss)
    368       356  
Unrealized gain (loss) on securities
    (243 )     (231 )
Retained earnings (accumulated deficit)
    (30,918 )     (30,438 )
                 
Total stockholders’ equity
    3,176       3,622  
                 
Total liabilities & stockholders’ equity
  $ 5,469     $ 5,054  
 
 
 
 

 
 

 
ZOOM TELEPHONICS, INC.
Condensed Statements of Operations
In thousands, except for per share data
 
(Unaudited)
 
   
Three Months Ended
   
Nine Months Ended
 
   
9/30/12
   
9/30/11
   
9/30/12
   
9/30/11
 
                         
Net sales
  $ 3,435     $ 3,047     $ 11,243     $ 9,021  
Cost of goods sold
    2,576       2,288       8,475       6,705  
                                 
Gross profit
    859       759       2,768       2,316  
                                 
Operating expenses:
                               
Selling
    431       477       1,459       1,596  
General and administrative
    295       310       908       917  
Research and development
    267       236       849       747  
       Total operating expenses
    993       1,023       3,216       3,260  
                                 
       Operating profit (loss)
    (134 )     (264 )     (448 )     (944 )
                                 
Other income (expense), net
    (20 )     (1 )     (29 )     70  
                                 
Income (loss) before income taxes
    (154 )     (265 )     (477 )     (874 )
                                 
Income tax expense (benefit)
    1             3       1  
                                 
Net income (loss)
  $ (155 )   $ (265 )   $ (480 )   $ (875 )
                                 
Earnings (loss) per share:
                               
                                 
Basic Earnings (loss) per share
  $ (0.02 )   $ (0.05 )   $ (0.07 )   $ (0.16 )
Diluted Earnings (loss) per share
  $ (0.02 )   $ (0.05 )   $ (0.07 )   $ (0.16 )
                                 
                                 
Weighted average number of shares outstanding:
                               
                                 
Basic
    6,974       5,451       6,974       5,451  
Diluted
    6,974       5,451       6,974       5,451  
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