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Zoom Telephonics Reports Results
for the Second Quarter Ending 6/30/01 Boston,
July 27th, 2001 —Zoom Telephonics, Inc. (NASDAQ:
ZOOM), a leading manufacturer of modems and other Internet
access products, today reported sales of $10.8 million for
its second quarter ending June 30, 2001, down 18% from the
second quarter of 2000. Sales for the first six months of
2001 were $21.1 million, down 23% from the first six months
of 2000. Zoom's second quarter 2001 sales increased
5% over the first quarter of 2001, primarily due to growth
in worldwide OEM and North American non-OEM sales.
Zoom reported a net loss of $2.6 million or $.33 per share
for the second quarter of 2001, versus a net loss of $937
thousand or $.12 per share for the second quarter of 2000.
For the first six months of 2001, Zoom reported a net loss
of $7.8 million or $1.00 per share, versus a net loss of $1.9
million or $.24 per share for the first six months of 2000.
Zoom ended the second quarter with a strong balance
sheet, with a current ratio of 6.7, cash of $5.4 million or
$.69 per share, and stockholders' equity of $28.8 million
or $3.66 per share. Zoom succeeded in reducing its net inventory
to $13.8 million, down from $21.9 million on December 31,
2000 and $17.3 million on March 31, 2001. According
to PC Data's tracking of U.S. dial-up modem retailers, from
May 2000 to May 2001 Zoom grew its market share from 11.2%
to 14.4%. Revenues for all dial-up modem manufacturers declined
36% as unit volume dropped 26% and average selling price dropped
14%. "We expect sales of dial-up modems by retailers
to increase when Internet Service Providers roll out service
that supports the new V.92 and V.44 standards," said
Frank Manning, Zoom's President and CEO. "Zoom is a leader
in V.92 and V.44, and our Zoom, Hayes®, and Global Village®
brands should benefit from the expected surge in sales. Until
then we will continue to try to grow our share of dial-up
modem revenues in the USA, the UK, and other major markets;
and we will position ourselves for growth in the broadband
and wireless network product areas." During the
second quarter of 2001 Zoom increased its sales of cable modems.
Zoom recently achieved @Home® level 2 approval for two
of its cable modems, and Zoom now has the only PCI cable modem
with CableLabs, WHQL, and @Home approvals. Zoom has recently
begun cable modem shipments to two top U.S. computer retailers,
Fry's and Micro Center®, and Zoom has received a commitment
from another major retailer. In addition, Zoom is shipping
to some cable service providers and has received commitments
from some original equipment manufacturers Zoom also
continues to expand its wireless local area network product
line, which now includes a range of low-cost 11 Mbps wireless
network interface cards, an access point, a gateway, and a
building-to-building bridge. Zoom has scheduled a
Q2 2001 earnings conference call for Friday, July 27th at
8:45a.m. Eastern Time. The call will be simulcast to stock
analysts and other interested parties on Zoom's website (www.zoom.com/Q2)
and other 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, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: investor@zoom.com.
Zoom's World Wide Web site is www.zoom.com
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