Penny Stock News: Zoom Telephonics Reports Results for the First Quarter of 2011

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BOSTON, MA–(Marketwire – May 4, 2011) – Zoom Telephonics, Inc. (OTCBB: ZMTP), a leading manufacturer of modems and other communication products, today reported net
sales of $2.8 million for the first quarter ended March 31, 2011, up 12.6%
from $2.5 million for the first quarter of 2010. Zoom reported a net loss
of $285 thousand or $0.05 per share for Q1 2011, a slight improvement over
Zoom’s net loss of $298 thousand or $0.15 per share for Q1 2010.

Gross profit was $808 thousand or 28.8% of net sales in Q1 2011, up from
$763 thousand or 30.6% of net sales in Q1 2010. The increase in gross
profit was primarily due to higher sales, and the decrease in gross margin
was primarily due to a shift in sales mix toward lower-margin products.

Operating expenses were $1.091 million or 38.9% of net sales in Q1 2011
versus $1.126 million or 45.1% of net sales in Q1 2010. Operating expenses
in Q1 2011 were lower than those in Q1 2010 primarily due to lower
personnel costs. Selling expenses rose from Q1 2010 to Q1 2011 due
primarily to higher sales-related variable expenses and higher
search-related advertising in Q1 2011.

Penny Stocks are stocks traded for under $2 and they represent the small cap companies. They trade on the OTCBB so you will not find them on the major stock exchanges. They are very cheap stocks and normally come for businesses needing capital. They are a very risky investment as the business can go under and leave you with a stock worth nothing. However that being said penny stock trading can be a great money maker, and there are numerous traders who make 6 figures and more from them each year.

The best reasons to trade in penny stocks are the fact that they do not require a large initial investment, meaning that they are an affordable investment for many. Penny stocks are cheap. For example if you were to buy 1000 shares in a company with shares at 10 cents, you would only require an investment of $100, whereas if the shares cost $5 you would require an investment of $5000. Penny stocks also have the potential of huge gains, and have been known to rise as much as 1000% daily. Therefore your $100 investment can be worth $1000. This is very unlikely to happen to other stocks from large cap businesses.


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