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Zoom Telephonics Reports Results for the Fourth Quarter Ending
12/31/01 Boston, February 12,
2002 - Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading
manufacturer of modems and other data communications products,
today reported sales of $10.3 million for its fourth quarter
ending December 31, 2001, down 37% from $16.3 million in the
fourth quarter of 2000. Sales for the full year 2001 were
$43.7 million, down 27% from $59.7 million in 2000.
Zoom reported a net loss of $4.9 million or $.63 per share
for the fourth quarter of 2001, versus a net loss of $1.1
million or $.15 per share for the fourth quarter of 2000.
For the full year 2001, Zoom reported a net loss of $18.3
million or $2.33 per share, versus a net loss of $3.1 million
or $.40 per share for 2000.
In the fourth quarter of 2001, Zoom wrote off all its goodwill
assets, a reduction of $2.0 million, and recorded a $1.1 million
inventory charge for valuation and obsolescence. In the full
year 2001, Zoom reduced its deferred tax assets by $3.8 million
and its goodwill assets by $2.3 million, and wrote down its
inventory by $4.6 million. Without these asset impairment
charges, Zoom's net loss would have been $1.9 million for
the fourth quarter of 2001 and $7.3 million for the full year
2001.
Zoom ended the quarter with a strong balance sheet, with a
current ratio of 4.8, cash and investment securities of $5.3
million or $.67 per share, and stockholders' equity of $18.4
million or $2.34 per share. "2001 was obviously
a very difficult year, judged by our operating results and
write-downs; but we are continuing to invest in our key business
areas, while working hard to keep our expenses down,"
said Frank Manning, Zoom's President and CEO. "Dial-up
modems continue to contribute the bulk of our revenues, but
we are encouraged by our recent sales of cable modems. We
now have a number of customers who have deployed our cable
modems in reasonable volume, who like our products, and continue
ordering. Zoom has made significant investments into broadband
and wireless networking, particularly cable modems and 802.11
wireless networking. We made major wireless product introductions
in the past few months, and we've taken a leadership position
in easy-to-use wireless networking. Our goal is to establish
Zoom as the company that best ties broadband access and wireless
networking together in a powerful easy-to-use package for
the customer." "Against the background of
an overall market decline for after-market dial-up modems,
we believe that we enhanced our position in the industry in
2001 and positioned ourselves for market share growth in 2002.
Internet Service Providers and Internet backbone providers
have dramatically increased their testing of V.92 in recent
months, and we are positioned to benefit from significant
V.92 rollout during the first half of this year. We are also
introducing new dial-up modem products and adding new accounts
that should help us gain additional share." Zoom
has scheduled a Q4 2001 earnings conference call for Tuesday,
February 12th 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/Q4) 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. 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.
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