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UPDATE 1-Zoom Technologies gets more orders, shares jump
September 21, 2010 / 2:47 PM / in 7 years

UPDATE 1-Zoom Technologies gets more orders, shares jump

* Says Beijing Tianyu orders 1.5 mln more units/quarter

* Shares rise 36 pct

Sept 21 (Reuters) - Shares of Chinese mobile phone maker Zoom Technologies Inc ZOOM.O rose 36 percent after it said it received an order for more units from Beijing Tianyu Communication Equipment Co Ltd, a key customer.

Mobile phone manufacturer Beijing Tianyu, Zoom’s largest electronic manufacturing service (EMS) customer, has placed an order for an additional 1.5 million units per quarter, beginning in the fourth quarter of 2010, Zoom said.

Zoom’s earlier contract with Beijing Tianyu, which accounted for 15 percent of total sales for the six months ended June 30, called for the supply of 2.2 million units per quarter, the company said.

Zoom sells mobile phones under the Leimone brand to major Chinese carriers such as China Mobile (0941.HK), China Unicom (0762.HK) and China Telecom (0728.HK).

The company, which also makes cable TV set-top boxes and other telecommunications devices for OEMs including Samsung Electronics (005930.KS), Palm Inc and Spreadtrum SPRD.O, has of late seen a surge in sales helped by large increases in orders from domestic EMS customers.

Zoom shares, which have shed 69 percent of their value over the last year, were up 28 percent at $4.58 in early trade Tuesday on Nasdaq. The shares were among the top percentage gainers on Nasdaq.

More than one million shares changed hands by 1440 GMT, about 20 times the stock’s ten-day moving average. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Don Sebastian)

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