Zoom Technologies, Inc., through its subsidiaries, operates as a technology company that engages in electronic and telecommunication product design, development, and manufacturing. The company provides electronic manufacturing services (EMS) for original equipment manufacturer (OEM) customers, as well as involves in the design and production of mobile phone products. It develops and produces GSM and CDMA mobile phones, wireless telecommunication modules, digital cameras, cable TV set-top boxes, and GPS equipment.

Revenue increased 34.3% over same quarter last year to $57.6 million.
Proprietary brand phone sales in the second quarter of 2011 reached 207,443 units compared to 56,714 units sold in same quarter last year. In addition to these sales, another 50,700 units were sold in India.
Revenues from sales of own brand products in the second quarter of 2011 were $14.9 million, an increase of 233% over the same quarter last year.
Gross profit rose 28.4% over same quarter last year to $5.9 million.
Net income, after incurring added R&D costs of approximately $1 million for new phones, decreased 26.5% to $1.5 million from same quarter last year.
Zoom Technologies, Inc. (Nasdaq:ZOOM), a leading China based manufacturer of mobile phones and related products, reported financial results for the second quarter ended June 30, 2011.
Our revenues were $57,564,265 for the quarter ended June 30, 2011, an increase of 34.3% or $14,687,392 as compared to $42,876,873 in the corresponding quarter last year. The increase was mainly due to the sales of our proprietary “Leimone” brand mobile phones. Our EMS revenue, other than own brand phone sales, for the second quarter of 2011 was $43.3 million or an increase of 12.8% from $38.4 million in the same period of 2010.
In the second quarter of 2011, we sold 207,443 units of our Leimone brand phones of which 158,751 were 3G models, total sales in Leimone phones were $13.8 million. Another 50,700 of our LongTel brand phones were sold to India and brought in sales of $1.2 million. Revenues from sales of our own branded products in the second quarter of 2011 were $14.9 million, representing an increase of 233% over $4.5 million for the same three-month period in 2010 where total units of Leimone brand phones sold were 56,714 of which 10,210 were 3G units.
Gross profit for the second quarter of 2011 was $5,881,890, an increase of 28.4% or $1,302,133 over $4,579,757 of the second quarter last year. Gross margin, the ratio of gross profit as a percentage of revenues was 10.2% in Q2 of 2011 compared to 10.7% for Q2 2010.
For the quarter ended June 30, 2011, after incurring added R&D costs of approximately $1 million for new phones to be released later this year, the Company’s net income was $1,495,223, a decrease of $539,425 or 26.5% from $2,034,648 for the corresponding 2010 quarter. Net margins, the ratio of net income over revenues, for the second quarters of 2011 and 2010 were 2.6% and 4.7% respectively.
Mr. Lei Gu, Chairman and Chief Executive Officer of Zoom Technologies, commented, “We are demonstrating our commitment to bringing advanced and innovative mobile phones to the markets under our proprietary brands. Our new series of stylish, tough and smart handsets shows the edge we have over the competition and we are excited about their release later this year internationally, including Asia, Europe and the United States.”
More about ZOOM at www.zoom.com

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