Discuss Company Profile of Zoom Technologies within the Company Profiles & News !! forums, part of the Mirror View - Ebooks Links & Miscellenous Reading Material category; Zoom Telephonics, Inc. designs and produces Voice over IP gateways, DSL modems, cable modems, dial-up modems, Bluetooth products, and other ...
| ||Thread Tools||Display Modes|
Company Profile of Zoom Technologies
Company Profile of Zoom Technologies - May 14th, 2011
Zoom Telephonics, Inc. designs and produces Voice over IP gateways, DSL modems, cable modems, dial-up modems, Bluetooth products, and other communications products under Zoom, Hayes and Global Village brands.
Zoom is headquartered in Boston, and its European sales and support center is in the UK. Zoom markets its products in over forty countries, and provides multi-lingual support from its offices in Massachusetts, and the United Kingdom.
Zoom Technologies, Inc. is a leading designer, manufacturer, and marketer of dial-up modems, cable and digital subscriber line (DSL) modems, wireless local area network (LAN) products, home phoneline networking devices, and a variety of data communication products. Its products--sold under the Zoom, Hayes, and Global Village names--are found in over 3,000 U.S. computer retail locations and in over 5,000 international locations. The company was one of the first manufacturers of faxmodems and voice faxmodems and stood at the forefront of emerging trends in computer connectivity during the late 1990s and into the new century. During 2002, the company changed its corporate name from Zoom Telephonics to Zoom Technologies and moved the jurisdiction of its incorporation from Canada to Delaware. Zoom Technologies conducts its business through its wholly owned subsidiary, Zoom Telephonics.
Zoom Technologies, Inc. (Zoom), through its wholly owned holding-company subsidiary, Gold Lion Holding Limited (Gold Lion) is the owner of 100% of Profit Harvest Corporation Ltd. (Profit Harvest) and through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co., Ltd. (Jiangsu Leimone) is the owner of 51% of Tianjin Tong Guang Group Digital Communication Co., Ltd. (TCB Digital). The business of Zoom comprised solely of Gold Lion's operating subsidiaries, which are TCB Digital, Jiangsu Leimone and Profit Harvest. Profit Harvest serves as sales and marketing arm of TCB Digital and Jiangu Leimone serves as manufacturing arm for TCB Digital. Both TCB Digital and Jiangsu Leimone are in the business of manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry and related software products.
The Company, through its wholly owned subsidiaries, Gold Lion and Jiangsu Leimone, owns 51% of TCB Digital. TCB Digital is engaged in electronic and telecommunication product design, development and manufacturing capability and process. TCB Digital has two business operations: providing Electronic Manufacturing Service for Original Equipment Manufacturer (OEM) customers and designing and producing mobile phone products. The Company offers electronic management system (EMS) to both domestic and global customers including Samsung, Tianyu, CCT, Palm, Danaher, Spreadtrum and SK Telecom. The products manufactured by TCB Digital include mobile phones, wireless telecommunication modules, digital cameras, cable TV set-up boxes, and global positioning system (GPS) equipment.
The Company competes with Bird Ningbo Co., Ltd, Haier Telecom Co. Ltd., Konka Group Co., Ltd, Lenovo Group Limited, TCL Communication Technology Holdings Limited, LG Electronics Ltd., Motorola Inc., Nokia Corporation, Samsung Electronics Co., Ltd., and Sony Ericsson Mobile Communications (China) Co., Ltd.
Indeed, the latter half of the 1990s proved to be boom years for technology-related and Internet-based companies. By 1998, the new standard for dial-up modems shifted to V.90 and K56flex, which allowed to users to connect to the Internet at 56,000 bps. Zoom spent heavily on developing new products that were compatible with this standard. In October 1998, the firm's Zoom FaxModem 56K Dualmode received an Editor's Choice award from CNET, beating out competitor 3Com Corp. Zoom also continued its acquisition program in 1999 with the purchase of Hayes Corp. The deal added a host of new modems to Zoom's product arsenal and gave the company access to Hayes' DSL and cable modem development facilities.
Zoom entered 2000 focused on its dial-up modems as well as its new broadband products. The popularity of broadband--high speed digital Internet access that was significantly faster than a dial-up modem--grew rapidly during the early years of the new millennium. Considered the wave of the future, broadband became the focal point of many companies' business strategies. In fact, the majority of Zoom's research and development spending during 2000 went towards developing broadband-related products. The company chose, however, to remain a premier dial-up modem provider as well--unlike competitor 3Com who exited the dial-up arena in 2000.
The company introduced new V.92 dial-up modems in 2000. V.92 was a new standard in dial-up access that increased possible upload speed to 48,000 bps. Zoom president and CEO Manning commented on the company's direction in an October 2000 press release, claiming that "industry analysts agree that dial-up modems will be the most popular way of accessing the Internet through 2010 and beyond. Zoom is committed to Internet access, and V.92 is an important part of that commitment. Along with cable modems, DSL modems, and advanced network products that link multiple users to the Internet, dial-up modems will continue to be important to Zoom." According to market research firm Instat/MDR, over 86 million analog modems were sold during 2001. That number was estimated to have increased to 89 million during 2002.
As Zoom kept pace with changing technology during the late 1990s and into the new century, its bottom line felt the crunch of falling modem prices. The firm began posting losses in 1997, and during 2001 sales fell by nearly 27 percent over the previous year as the firm reported a net loss of $18.3 million. The company cut spending and jobs as a result of a slowing economy and falling retail demand for its dial-up modems. Its share price tumbled from $15 in March 2000 to below one dollar in early 2003. As a result, the company's stock was moved from the main NASDAQ trading platform to a market for small-cap stocks. In early 2002, the company changed the jurisdiction of incorporation from Canada to Delaware and adopted a new corporate name, Zoom Technologies, Inc. The company continued to conduct business through its Zoom Telephonics subsidiary.
In January 2003, the firm began shipping its Zoom CableModem 5041 to Best Buy stores, hoping to cash in on increasing demand for broadband modems. Despite the challenges it faced, Zoom remained optimistic about its future. Whether or not Zoom could achieve the level of success it had secured during the early 1990s, however, remained to be seen.
Principal Subsidiaries: Zoom Telephonics Inc.
Principal Competitors: 3Com Corporation; Motorola Inc.
3G Modems and Routers
Wireless-G LAN Products
Bluetooth Audio Products
Bluetooth Wireless Products
Voice over IP
Market Cap (Mil.): $55.12
Shares Outstanding (Mil.): 15.84
Annual Dividend: --
Yield (%): --
ZOOM.O Industry Sector
P/E (TTM): 3.70 19.15 27.48
EPS (TTM): -52.86 -- --
ROI: 32.20 5.48 16.09
ROE: 31.97 6.44 17.67
Sales: $43.7 million (2001)
Stock Exchanges: NASDAQ
Ticker Symbol: ZOOM
NAIC: 334210 Telephone Apparatus Manufacturing; 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing
1977: Frank B. Manning and Peter R. Kramer establish Zoom Telephonics.
1980: Zoom launches the Demon Dialer.
1983: The company introduces the Networker, its first modem product.
1986: Sales drop to $1.5 million as the Demon Dialer becomes obsolete.
1990: Zoom goes public.
1991: Sales reach $25 million based on rising modem sales.
1994: By now, international sales account for nearly 20 percent of revenues.
1996: Tribe Computer Works is acquired.
1999: Zoom acquires Hayes Corp.
2002: The company incorporates in Delaware and changes its name to Zoom Technologies, Inc.
Name Age Since Current Position
Lei Gu 47 2009 Chairman of the Board, Chief Executive Officer
Anthony Chan 56 2010 Chief Financial Officer, Secretary, Director
Cheng Wang 55 2009 Director
Augustine Lo 56 2009 Independent Director
Chang Shan 51 2008 Independent Director
207 South Street
Boston, Massachusetts 02111
|Related to Company Profile of Zoom Technologies|
|advertising strategies, board of directors, branding strategy, business description, business strategy, company brands, company history, company overview, company profile, company strategy, company strengths, compnay growth, financial analysis, investor relation, key challenges, marketing strategy, swot of company, zoom technologies|