UPDATE 1-Zoom Technologies ups sales view for its branded phones

* Says orders for Leimone brand phones strong in H2

* Says to sell 580,000 Leimone phones in H2

* Shares rise 8 percent in pre-market trade

Sept 28 (BestGrowthStock) – Chinese mobile phone maker Zoom
Technologies Inc (ZOOM.O: ) raised its 2010 unit sales forecast
for its Leimone branded mobile phones by nearly a fifth,
sending its shares up 8 percent in pre-market trade.

The company said the strong forecast was driven by a spike
in demand for these phones in the second half of the year.

Zoom’s Leimone unit has a higher profit margin than its
other businesses, which include contract manufacturing for OEMs
such as Samsung Electronics (005930.KS: ) and Palm Inc, and
accounted for 10 percent of total sales in first half of the
year.

The company said it now expects to sell 580,000 units of
its Leimone phones in the second half of the year, more than 4
times the units sold in the first half.

Zoom, which sells these phones to major Chinese carriers
such as China Mobile (0941.HK: ), China Unicom (0762.HK: ) and
China Telecom (0728.HK: ), said it now expects to sell 700,000
units in 2010, up from its prior view of 600,000 units.

“Our ability to significantly increase our manufacturing
capabilities in the second half of 2010 underscores our strong
position in the robust China mobile phone market,” Chief
Executive Leo Gu said in a statement.

Zoom, which also makes cable TV set-top boxes and other
devices for OEMs, has been riding the explosive growth in the
Chinese mobile market — the world’s largest mobile market with
almost 800 million subscribers.

Earlier this month Zoom said Beijing Tianyu Communication
Equipment Co Lt, a key customer, will boost orders by
two-thirds starting in the fourth quarter. [ID:nSGE68K0KY]

Zoom shares, which have shed 66 percent of their value
since touching a year-high of $11.29 in November, were up 32
cents at $4.20 in premarket trade. They closed at $3.88 Tuesday
on Nasdaq.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by
Saumyadeb Chakrabarty)

UPDATE 1-Zoom Technologies ups sales view for its branded phones