Manning also believes that Arris, which has rights to the Motorola brand through the end of this year, is taking on some risk by leaving the Motorola brand behind. Arris seems to agrees that it could face some challenges at retail without Motorola on its banner. “Shelf space in retail outlets can also be impacted by how recognizable a brand is by customers,” Arris said in this recent 10-Q filing. “If we are unable to successfully rebrand those products, our sales in those regions and channels may decrease. Further, the loss of the use of the ‘Motorola’ brand may result in a lower amount of shelf space, or space in less desirable areas, which may impact our sales.” Arris has been trying to build consumer awareness of its brand through initiatives such as its sponsorship of Carl Edwards in the No. 19 Toyota Camry. But how much Arris truly has at stake at retail is not easy to determine, since the company does not break out how much cable CPE revenues comes in from that channel. On Tuesday’s call, Manning helpfully estimated that Arris’s Motorola brand sales are presently in the range of $50 million to $100 million per year. Zoom would do well if it’s able to grab just a portion of that, as the Boston-based company generates annual sales of about $12 million. In the first quarter of this year, Zoom posted revenues of $3.06 million, down slightly from the year-ago quarter primarily to reduced sales of dial-up modems. Arris, meanwhile, is in the cat bird’s seat of cable broadband CPE. According to Infonetics Research, Arris ended 2014 with 36% share of global revenue in the category, followed by Cisco Systems (19%) and Technicolor (13%). Jeff Heynen, the research director for broadband Access and pay TV at Infonetics, said Zoom and other cable modem makers could see greater opportunity at retail as more consumers cut the pay TV cord and go broadband only, paired with the trend toward rising equipment lease fees. Manning also discussed Zoom’s
Zoom Telephonics is a small company that will soon gain access to a big name brand – Motorola. Zoom, under an exclusive five-year licensing agreement announced earlier this week, will use the Moto brand in cable modems/routers and set-tops (as well as cable modems inside set-tops) sold at retail in the U.S. and Canada. The deal, Zoom CEO Frank Manning said Tuesday on a conference call, carries “significant upside with some risk.” The upside is obvious – Zoom, which sells cable modems and gateways at outlets such as Best Buy, Micro Center, Staples and Walmart, believes it stands to sell more products at retail using a better-known consumer brand. “We’ll be doing the same for the Motorola brand and we should be able to expand the number of retailers and service providers who buy from us,” Manning said. “This won’t be easy. Zoom will… compete with powerful companies, including Arris and Netgear for shelf space and sales." Now, the risks. Zoom has not announced the specific terms of the licensing agreement other than to say it has agreed to pay Motorola Mobility a one-time set-up fee and a royalty based on net sales, but Manning acknowledged that his company has “made significant financial commitments” in doing the deal. Zoom will be also paying to use Motorola’s brand on products that are already affixed with notoriously thin margins (even with the retail markup), but Manning believes the Motorola label will help it overcome that challenge. “Even with those [financial] commitments, we believe that Zoom’s cable modem margins after licensing fees should stay the same or increase given Motorola brand's power,” he said. Zoom, he added, also plans to raise additional funds to provide working capital to finance the growth it hopes to generate with the new branding strategy, but said it was too early to provide those details. Manning also believes that Arris, which has rights to the Motorola brand through the end of
Not me. I'm still in shock from another top ten OTC holding of mine...zmtp. Eight million shares outstanding, doing 12 million revenue. Market cap of roughly $4 million, puts it at .33 X revenue. They just won a 5 year contract with Motorola/Lenova to build modems/routers for a $50-100 million market. Almost no sell volume at this price. Main question is how much money they will need to ramp up production and at what share price it's raised. This might be my retirement ticket, it things fall into place like I believe they will. Been in this one for years and their/my ship finally came in. Waiting on chembio to double this year too.
"DCIG Reports Dot Hill AssuredSAN 4004 Hybrid Storage Array Tops Nimble Storage CS500 in Efficiency, Flexibility and Enterprise Readiness
Competitive Advantage Paper From DCIG Says Dot Hill's Hybrid Storage Array With RealStor Delivers Enterprise-Class Technology to Small and Midsize Organizations
LONGMONT, Colo., May 21, 2015 (GLOBE NEWSWIRE) -- Dot Hill Systems Corp. (HILL), a trusted supplier of innovative enterprise-class storage systems, today announced availability of a new Competitive Advantage report published by DCIG entitled, "Dot Hill AssuredSAN(R) 4004 Tops Nimble Storage CS500 in Real-time Data Center Efficiencies, Flexible Multi-Protocol Support and an Enterprise-ready Platform." Authored by Chuck Cook, DCIG analyst, the report analyzes the architectural designs and key features of hybrid storage solutions from Dot Hill and Nimble and concluded that the AssuredSAN 4004 is an exceptional platform.
Offering up to 84TB of storage capacity per rack unit, the Dot Hill AssuredSAN 4004 with RealStor(TM) offers 3.5X the storage density of the Nimble Storage CS500, which is limited to 24TB of raw storage capacity per rack unit.
"The versatility of the AssuredSAN 4004 allows it to fit in diverse environments while optimizing performance for business-critical applications," said Cook. "Superior data center efficiency, flexible protocol support and enterprise-ready features combine to make the Dot Hill AssuredSAN 4004 platform a better fit than the Nimble Storage CS500 for many enterprise deployments."
"This DCIG Competitive Advantage report validates what we've seen in our labs and in the field," said Bill Wuertz, senior vice president, products and solutions, Dot Hill. "Dot Hill's unique RealStor storage operating system stands alone in its ability to provide true autonomic, real-time data movement to accelerate storage operations delivering data where customers need it, when they need it—in real time. Real time matters."
The Dot Hill AssuredSAN 4004 goes beyond the CS500's read caching, and utilizes flash for multiple functions including application as a high performance storage tier, along with read caching; and packs 3.5X the raw data into each rack unit. "Unlike Nimble Storage, network port types can easily be changed by replacing the SFPs provided by Dot Hill," the report says.
According to the report, the AssuredSAN's active-active controller configuration is an enterprise expectation. With active-active controllers, data requests are executed through concurrent access to all logical volumes. If one controller goes offline, the remaining controller services requests without interruption. "This architecture efficiently utilizes all of the system resources (CPU, memory and ports). With Nimble's active-standby configuration, half of its resources sit idle," the report states.
Frank did the best he could to extract the truth from Zoom's China management. I finally gave in and sold all, when he couldn't get much information from them on their conference calls. ZMTP sold all of their zoom shares shortly afterwards. Maybe we'll get the symbol and Nasdaq listing back some day. But, when you think of it, ZMTP is going to benefit from a China company now. My state has the most employees employed by a China company, than any other state in the country. I'm still amazed Frank kept the company together enough to survive, after the fraud committed by those thugs. Zoom Telephonics might just make up for my losses from Zoom Technologies in time.
Arris/Motorola modem sales that ZMTP will be taking over were $50-$100 million. It's just a matter of how much money zoom needs to raise and at what price/share. Few shares for sale on the open market.
I've got rvlt on my watch list.
I was in zoom technology before it became zoom telephonics. I lost a ton of money in the China company that tsook over the Nasdaq with the reverse merger and created zoom Telephonics on the OTC. The only reason I held ZMTP is because Frank Manning and his management was honest throughout the entire debacle.
The China management turned out to be complete frauds. I was fooled just like Frank, even though I was given many warning signs over the years. I think I lost around 70K in zoom and still cashed out 38K before it became worthless. It was a valuable lesson and I learned a lot from that loss. Now, it's amazing that Zoom has survived and is about to thrive.
I would love for management to buy back the Zoom domain name. To me it can be a top 10 global generic brand. First things first with the modems, but Lenovo needs to look long and hard at making it their brand for smartphones, tablets, laptops...etc. It's such a natural flow, like apple. I agree the ramp up in 7 months will be fast. Don't know how much money they need to raise, but the return on the invested dollars is almost guaranteed. I tried to buy shares on the bid yesterday and never got filled. Not many for sale under $1. I think it's going to have to triple in price, before many sellers step up. If we didn't sell over the past years, why would we sell now?:) I'm just so thankful I didn't give up on Zoom and dump all.
in the stock market? At $1.50/share, it puts Zoom's market cap at 1 times trailing 12 month revenues. They just won a contract starting January 1 2016 with product sales of $50-$100 million. My biggest question until Monday was, could ZMTP survive? That risk is no longer a threat. It's just a matter of how much of the $100 million market Zoom can win next year, with the Motorola/Lenovo brand.
Zoom modem reviews. Now I know why Motorola/Lenovo switched to Zoom. There may be a little market cannibalization, as the zoom brand competes with the Zoom/Motorola brand devices. But, the extra outlets and markets will increase Zoom's sales many multiples.
Besides a public offering or private placement, I don't know how anyone can collect a large position in Zoom below $1 now. This next week should be interesting. Without guidance on the contracts, We'll have to assume many millions. I wonder if this win will help their current Zoom branded products as well?
I don't trade Air. If it were to pop 50%, maybe? I just sit back and collect an awesome quarterly dividend and let management work their magic, in a sector I love!
$2/share, based on this win alone? The price was already severely underpriced, even before the Motorola five year contract. I guess the big question is, at what share price will the funding for the ramp up be priced? Sure hope it's much higher than current price. The benefit to Zoom is, they get the recognition of using the Motorola name on their products now. At some point, I hope lenovo decides to use the "ZOOM" brand on their products. It's much better than Lenovo and with their marketing, they can make it a house hold name within months.
The CEO isn't the most eloquent speaker, but he's honest and smart. I have a long history with Zoom/ZMTP. Lost a ton on zoom when zoom reversed merged with zmtp. Zoom went to nasdaq and zmtp went down to otc exchange. Zoom china management turned out to be crooks.
Might be a buy of the year. The company is already doing $12 million in sales and has a $2 million market cap! Low outstanding shares like vecima, but even lower with 8 million shares. The Motorola/Lenova...modem/router win for 5 years is huge. Just how large we'll find out in 2016.
That's cool. They have great products. Lenovo needs a nice U. S. brand. Seems Zoom is the chosen one. I have a friend that has large marketing account with Lenovo. I don't think she has a clue what's coming. This has been a boring company, but Frank was always honest with us. We all got shafted by Zoom technologies, including ZMTP insiders. Finally shareowners will be rewarded.
for buying enough time to save the company. For many years I've been saying Zoom is a top 10 generic brand name. Maybe the new contracts will take advantage of that natural gift.
Hawk, check out the zmtp release. It's been a dead stock for me for years. Might be worth a listen on their conference call tomorrow at 10am.
HAUPPAUGE, NY--(Marketwired - May 18, 2015) - Air Industries Group (NYSE MKT: AIRI)
Air Industries Group (AIRI), an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, reports financial results for the first quarter ended March 31, 2015.
"We are on budget to deliver on our guidance of revenue and EBITDA for 2015 of $85 to $95 million and $10 to $13 million respectively," said Dan Godin, Chief Executive Officer of Air Industries Group, who continued, "and but for some acquisition related costs which we expensed, we would have beat our budgeted EBITDA for the quarter by over 10%, and we expect that our momentum will continue. We are excited to have closed the acquisition of Sterling Engineering Corporation late in Q1, and expect to continue to execute our strategy of making selective, thoughtful, accretive acquisitions as opportunities arise. However, accretive growth through acquisition is not the only way we will enhance shareholder value. I believe we have real opportunities to exploit the many capabilities we already possess to drive profitable organic top and bottom line growth as well."
Financial Results for the Three Months Ended March 31, 2015:
For the three months ended March 31, 2015, consolidated net sales were $16,811,000, an increase of $1,358,000 or 8.8% compared to consolidated net sales of $15,453,000 for the comparable period last year.
Consolidated gross profit was $4,369,000, or approximately 26.0% of sales for the three months ended March 31, 2015 compared to $4,045,000 or approximately 26.2% of sales for the 1st quarter 2014.
Consolidated operating expenses were $3,903,000 for the three months ended March 31, 2015, an increase of $1,087,000 or 38.6% compared to $2,816,000 for the 1st quarter 2014.
For three months ended March 31, 2015 consolidated operating income was $466,000, a decrease of $(763,000) or (62.1%) from $1,229,000 for the 1st quarter 2014. Consolidat