Minim Reports Fourth Quarter and Year-End 2020 Results

Press Release

Record quarterly and yearly revenue; gross margin improvement; successful new product initiativesManchester, NH – (NewMediaWire) – March 09, 2021 – Zoom Telephonics, Inc., doing business as Minim (OTCQB: MINM) today reported fourth quarter and full year preliminary financial results for the period ended December 31, 2020.Q4 2020 highlights include:Record net revenue of $13.7 million and record revenue growth of 30% year over year, and a 14% increase sequentially from Q3 2020.  Continued gross margin improvement at 33%, 25% higher year over year and 16% improvement sequentially from Q3 2020.Successful launch of high-value, software-enabled Motorola®-branded modem to Amazon and Target.Closed merger between Zoom Telephonics, Inc. and Minim Inc. — combined company offers intelligent software and powerful software-enabled hardware focused on a rapidly growing market, led by a proven team. Full-year 2020 highlights include:Record net revenue of $48.0 million, a 28% increase over 2019.28% gross margin representing a 64 basis point decline over 2019.“We are extremely proud of our operational and financial accomplishments in 2020, which position our company well for continued growth in 2021,” said Gray Chynoweth, Chief Executive Officer of Minim.  “As the pandemic underlined, the need for high-quality home networking products and services is increasing rapidly. We intend to remain a leader in this market, providing continued innovation in best-in-class software, hardware and services to connect more customers and more homes in the U.S. and internationally.”Sean Doherty, Chief Financial Officer of Minim, commented, “We made important progress in the fourth quarter of 2020, including the speedy completion of our merger. We see our 2020 results as an early demonstration of our sustainable business model with expanding growth opportunities.”Non-GAAP net loss in the fourth quarter of 2020 was $0.8 million, a $1.0 million year over year decrease (primarily driven by Payroll Protection Program loan forgiveness in the amount of $1.1 million) and a $1.5 million decrease sequentially from Q3 2020.  Net loss per share on a GAAP basis for the fourth quarter of 2020 was ($0.04), compared with ($0.06) in the comparable period of Q4 2019, and ($0.01) in the prior quarter in Q3 2020.For the full year, non-GAAP net income was $1.0 million, a $1.0 million increase compared to 2019, reflecting the lessening impact of China tariffs over the course of the year as production was shifted out of China being partially offset by the need for air freight shipping earlier in 2020 in response to delays caused by the pandemic. As of the fourth quarter, the company had completely shifted production out of China and resumed ocean freight shipping. Net loss per share on a GAAP basis in 2020 was ($0.15), compared to ($0.18) in 2019, again reflecting the increased costs associated with tariffs and the temporary use of air freight.The company ended the year with $1.6 million cash, cash equivalents, and restricted cash compared to $4.8 million at the end of Q3 2020, due to expenses associated with the merger as well as inventory build.  The company also increased its credit facility with Rosenthal & Rosenthal from $4.0M to $5.0M to increase financial flexibility at a time of high customer demand and enable it to continue to scale operations for higher product levels and to ensure the uninterrupted introduction of new products.The results reported above are preliminary and are subject to audit adjustments.Business Outlook“We remain focused on pursuing the large opportunity ahead of us as we build out our relationships to reach more customers in more geographies,” said Nicole Zheng, Chief Marketing Officer of Minim. “In addition, our retail strategy continues to expand, with the addition of important customers in 2020 leading to greater demand. We are committed to continuing to launch innovative solutions that leverage our technological strength to address new customer needs. We look forward to a robust year of new product introductions along with market …