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Zoom Technologies Reports Results
for the First Quarter Ending 3/31/02 Boston,
April 30, 2002 —Zoom Technologies, Inc. (NASDAQ:
ZOOM),
a leading manufacturer of modems and other data communications
products, today reported sales of $9.0 million for its first
quarter ending March 31, 2002, down 11% from $10.0 million
in the first quarter of 2001. Zoom reported an operating
loss of $1.8 million for the first quarter of 2002, compared
to an operating loss of $5.2 million in the first quarter
of 2001. Zoom's cash balance on March 31, 2002 was
$7.1 million, or $.91 per share, up $1.9 million from its
cash balance on December 31, 2001. On March 31, 2002 Zoom
had a current ratio of 4.6 and stockholders' equity of $14.9
million, or $1.89 per share. Zoom reported a net loss
of $3.5 million or $.44 per share for the first quarter of
2002, versus a net loss of $5.2 million or $.66 per share
for the first quarter of 2001. The net loss of $3.5 million
for the first quarter of 2002 consisted of the operating loss
of $1.8 million, a non-cash tax expense of $2.0 million, and
a non-cash extraordinary gain of $.3 million. The tax expense
brought to zero Zoom's deferred tax asset balance. The extraordinary
gain was due to a complete write-off of negative goodwill
per the mandatory adoption of Statement of Financial Accounting
Standards #142. "Our numbers demonstrate that
revenues were down again, but the rate of decline slowed,"
said Frank Manning, Zoom's President and CEO. "Our operating
loss improved significantly, primarily due to our cost-cutting
moves, and we improved our cash position. Looking forward,
we are encouraged by progress in a number of areas. We believe
that V.92 is finally positioned for significant nationwide
Internet Service Provider deployment, and Zoom is a leader
in V.92 client modems. Zoom has begun shipping V.92 softmodems
to computer manufacturers and system integrators, and demand
is strong. Our cable modem customers are happy, and we are
making good progress in getting approvals from cable service
providers who require testing even after CableLabs approval.
We just placed our USB DSL modems into the largest computer
retailer in the UK, and we expect the retail DSL market to
significantly grow in the UK and Germany this year. Our wireless
networking products are getting good reviews, due largely
to our focus on ease of installation and use. And our new
generation of dialers is generating strong interest as we
prepare them for volume production. There's no question that
our business remains challenging, but we are rising to the
challenge with a team of people committed to great products
and quality support." Zoom has scheduled a Q1
2002 earnings conference call for Tuesday, April 30th 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/Q1)
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 Technologies
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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