ZOOM Technologies Inc., a manufacturer and marketer of communications products, works to manufacture and market products directed at the wireless and landline communications markets. The company’s product line includes modems of several varieties, Voice over Internet Protocol devices (VoIP), wireless local networking devices, wireless-G products (USB and wireless PC card clients), routers and telephony type products. The company also offers other assorted communications hard goods products such as telephone jacks.
Although the communications marketplace is currently in a state of development and flux, the company does appear to have the depth and breadth of product development to keep pace. Its core business in the modem and VoIP marketplace should enable it to assess current trends and remain on the front line of consumer tastes and trends. This, however, is the key to ZOOM’s success. Mobile devices, currently much more developed in European markets, are starting to advance in the U.S. and generally North America.
Positioning is the word of choice for the company. Although the second quarter saw a reduction in sales, gross profits were up slightly. Generally speaking, these reductions were in line with the world economy but also fueled by currency rate exchange levels from the UK Pound during the quarter.
Past these current conditions, the company is anticipating a solid cash infusion from its investment in Unity Business Networks, after Unity’s pending sale to Telesphere Inc. From all indications, this revenue influx is expected in August or September and should aid in the company’s move toward mobile devises and its pending relationship with a vertically integrated Chinese mobile company. In a general sense, this move is logical and needed to keep the company current with consumer trends. If ZOOM Technologies can keep pace, not only with consumer trends but with regard to its balance sheet, it seems that it will be a real player; not only within the marketplace but also as a target for some other communications player.
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