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UPDATE 1-Zoom Q1 beats, raises full-year outlook; shares rise
May 12, 2010 / 2:10 PM / 7 years ago

UPDATE 1-Zoom Q1 beats, raises full-year outlook; shares rise

* Q1 EPS $0.20 vs est $0.17

* Q1 rev $51 mln, up 77 pct

* Sees Q2 rev $56-$62 mln vs est $58.3 mln

* Sees FY 2010 rev $250-$270 mln vs est $245.6 mln

* Shares rise 18 pct

May 12 (Reuters) - Chinese mobile phone maker Zoom Technologies Inc ZOOM.O posted better-than-expected first-quarter results, helped by strong demand for its branded phones, and the company raised its full-year outlook.

Shares of the company rose 18 percent in early morning trade.

The company now expects full-year 2010 revenue of $250 million to $270 million, up from its prior view of $240 million and $260 million. Analysts on average were looking for revenue of $245.6 million, according to Thomson Reuters I/B/E/S.

“We will continue to focus on our mobile manufacturing business in 2010, as the market opportunity in China is in high demand,” Chief Executive Lei Gu said in a statement.

Net income for the first quarter was $1.90 million, or 20 cents a share, compared with $891,332, or 45 cents a share, last year.

Revenue jumped 77 percent to $51 million as the company saw a rise in orders from domestic electronics manufacturing service customers and strong sales of its LEIMONE branded phones.

Analysts on average expected earnings of 17 cents a share, excluding special items, on revenue of $40.2 million.

Zoom shares were up 76 cents, or 12 percent, at $7.10 in early morning trade Wednesday on Nasdaq. They touched a high of $7.50 earlier in the session. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Ratul Ray Chaudhuri)

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