Zoom Telephonics, Inc. (ZMTP) saw its loss widen to $0.24 million in the quarter ended compared with $0.01 million a year ago.
Revenue during the quarter surged 77.85 percent to $5.99 million from $3.37 million in the previous year period. Gross margin for the quarter contracted 52 basis points over the previous year period to 32.14 percent. Operating margin for the quarter stood at negative 4.27 percent as compared to a positive 0.62 percent for the previous year period.
Operating loss for the quarter was $0.26 million, compared with an operating income of $0.02 million in the previous year period.
"In Q3 2016 we continued a significant ramp in sales due to our Motorola brand cable modems," said Frank Manning, Zoom's president and chief executive officer. "We expanded our shelf space in major retailers during Q3 2016, and shipped our fifth major Motorola brand cable modem by the end of Q3 2016. We also continued to grow our Amazon sales. During the quarter an independent lab's test confirmed the superior WiFi performance of our MG7550 16x4 AC1900 cable gateway when compared to AC1900 cable gateways from Arris and Netgear. In August 2016 we announced a major expansion of our Motorola brand license so that our trademark rights now include worldwide rights for cable modems and gateways plus WiFi routers, range extenders, access points, and other WiFi products. We are making good progress in development of new cable modems, a WiFi router, a range extender, and a line of cellular data products."
Working capital drops significantly
Zoom Telephonics, Inc. has witnessed a decline in the working capital over the last year. It stood at $2.91 million as at Sep. 30, 2016, down 44.97 percent or $2.38 million from $5.28 million on Sep. 30, 2015. Current ratio was at 1.59 as on Sep. 30, 2016, down from 6.06 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 82 days for the last year period. Days sales outstanding went down to 32 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 34 for the same period last year.
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