|
Zoom Telephonics Reports Results
for the First Quarter Ending 3/31/01 Boston,
April 27, 2001 —Zoom Telephonics, Inc. (NASDAQ:
ZOOM),
a leading manufacturer of modems and networking products,
today reported sales of $10.3 million for its first quarter
ending March 31, 2001, down 27% from $14.0 million in the
first quarter of 2000. Zoom reported a net loss of
$5.2 million or $.66 per share for the first quarter of 2001,
versus a net loss of $941 thousand or $.12 per share for the
first quarter of 2000. ``The quarter was hurt by weakness
in the dial-up modem market and a severe industry-wide electronics
inventory correction that affected overall demand for broadband
modems,'' said Frank Manning, Zoom's President and CEO. ``We
remain hopeful that the new V.92 standard for dial-up modems
will drive sales at retail later this year as Internet Service
Providers begin to offer the enhanced features of V.92 to
their customers. Zoom was the first company to ship V.92 products,
is a leader in the category, and is very well positioned to
capitalize on the change from V.90 to V92. We also expect
cable modems, ADSL modems, and advanced networking products
to begin to provide more significant revenue contribution
later this year. Zoom currently has one of the broadest lines
of CableLabs® approved cable modems, including Ethernet,
USB, and PCI models. We are managing our resources very carefully
in this difficult environment; and have reduced our worldwide
staff from 330 employees to 250 since the start of the year,
implemented a temporary wage freeze, and tightened discretionary
spending.'' Zoom's reported net loss of $5.2 million
included a $2.6 million inventory write-down, predominantly
against its inventory relating to broadband modems and wireless
networking products, reflecting the Company's low sales of
these products and a decline in component and finished goods
prices for these categories. The Company's net loss also increased
this quarter due to a 100% valuation allowance for the $1.7
million tax benefit associated with the quarter's pre-tax
loss. Zoom ended the quarter with a strong balance
sheet, with a current ratio of 7.0, cash and investment securities
of $5.1 million or $.65 per share, and stockholders' equity
of $31.4 million or $4.00 per share. In January 2001 Zoom
obtained a $6.0 million mortgage, secured by Zoom's headquarters
real estate in Boston, Massachusetts and reflected on its
balance sheet as long-term debt. The appraised value of the
real estate for the mortgage transaction was $10.9 million,
while the net book value reflected on Zoom's balance sheet
is only $2.2 million. Zoom has scheduled a Q1 2001
earnings conference call for Friday, April 27th at 8:45AM
Eastern Time. The call will be simulcast to stock analysts
and other interested parties on Zoom's website (www.zoom.com/Q1)
and numerous leading financial and investor-oriented websites
via the CCBN / Business Wire StreetEvents network. Shortly
after the conference call, a recorded broadcast will be available
on Zoom's website and on the StreetEvents network. For additional
information, please contact Investor Relations, Zoom Telephonics,
207 South Street, Boston, MA 02111, telephone (617) 423-1072,
email investor@zoom.com,
or visit Zoom's website at www.zoom.com.
For additional information, please contact:
Investor Relations,
Zoom Telephonics
207 South Street
Boston, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: investor@zoom.com.
Zoom's World Wide Web site is www.zoom.com
|
