Chinese mobile phone maker Zoom Technologies (NASDAQ:ZOOM) said stronger-than-expected orders for its Leimone brand phones led the company to raise its fiscal 2010 sales guidance.
Shares of Zoom traded higher after the company upped its full-year outlook for the Leimone phones by 17%, to 700,000 units from its earlier view of 600,000 units, representing a ten-fold increase from the prior year.
In the second-half of the year, Zoom expects to sell 580,000 Leimone mobile phones, including 100,000 units of the latest 3G design, higher than the 128,000 sold in the first-half of the year.
The Beijing, China-based company, which currently makes 17 models of Leimone products, said the brand has a higher profit margin than Zoom’s traditional EMS business.
Zoom CEO Leo Gu said the company is “proud” of its expansion in the rapidly growing China 3G market, particularly its ability to provide mobile products for “top tier” Chinese mobile phone companies as well as the growing demand of “young people” in China.
Also, the company's ability to “significantly increase” manufacturing capabilities in the second-half “underscores” its position in the robust China mobile phone market,” he said.