Zoom Telephonics, Inc (ZMTP) saw its loss widen to $0.99 million, or $0.07 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.72 million, or $0.05 a share.
Revenue during the quarter surged 190.57 percent to $5.15 million from $1.77 million in the previous year period. Gross margin for the quarter contracted 50 basis points over the previous year period to 27.34 percent. Operating margin for the quarter stood at negative 18.15 percent as compared to a negative 40.09 percent for the previous year period.
Operating loss for the quarter was $0.93 million, compared with an operating loss of $0.71 million in the previous year period.
“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 Chief executive officer. “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.” Working capital declines
Zoom Telephonics, Inc has witnessed a decline in the working capital over the last year. It stood at $3.40 million as at Dec. 31, 2016, down 22.38 percent or $0.98 million from $4.38 million on Dec. 31, 2015. Current ratio was at 1.70 as on Dec. 31, 2016, down from 3.55 on Dec. 31, 2015.
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