ZAP Reports Second-Quarter Financial Results for 2001August 28, 2001 by Jeff Shepard
ZAP (Sebastopol, CA), formerly known as ZAPWORLD.COM, reported its financial results for the second quarter ended June 30 of fiscal year 2001.
Total revenues for the quarter ended June 30, 2001, were $940,000 compared to $2,283,000 in the prior year, a decrease of $1,343,000 or 59 percent. Net loss for the same period was $1,953,000, or $0.31 per share, compared to a net loss of $477,000, or $0.09 per share in 2000. Revenues for the six months ended June 30, 2001, were $2,953,000 compared to $4,180,000 in the prior year. The net loss for the first six months of 2001 was $3,237,000, or $0.54 per share, compared to a loss of $960,000, or $0.19 per share in the prior year.
"The company is taking several corrective actions to affect a turnaround plan, improve margins and reduce costs. Comprehensive restructuring and cost cutting has helped streamline the workforce by eliminating 65 percent of employees since January 2001. We also have moved our production overseas to lower cost contract manufacturers. In addition, the company is narrowing its sales and marketing focus to develop a core group of products that will be promoted for the holiday season. We are making progress with restructuring the company's balance sheet, reducing costs and creating a new strategic business plan," said Bill Hartman, CFO of ZAP.