Zoom Telephonics Reports Results
for the Third Quarter Ending 9/30/00
October 26th, 2000 - Zoom Telephonics, Inc. (NASDAQ: ZOOM),
a leading manufacturer of modems and other data communications
products, today reported sales for its third quarter ending
September 30, 2000 of $16.5 million, down 9% from Q3 1999
and up 25% from Q2 2000. Zoom reported a net loss of $50 thousand,
or $.01 per share, for Q3 2000, versus net income of $95 thousand
or $.01 per share for Q3 1999.
"The Zoom sales
area with the highest growth from Q3 1999 to Q3 2000 was OEM
Sales, covering sales to Original Equipment Manufacturers
worldwide, which went from $700 thousand to $1.5 million,"
said Frank Manning, Zoom's President and CEO. "North
American non-OEM sales were up slightly to $12.7 million due
to a significant market share gain in an overall smaller market.
International non-OEM sales had the biggest drop, from $5.0
million to $2.3 million, primarily due to weak sales in Europe.
We have restructured our international sales group, and hope
to see significant improvement in quarters to come."
"PC Data tracks a number of computer products retailers
in the USA. They report that from September 1999 to September
2000 our Zoom(R) brand's share of overall dial-up modem revenues
went from 8.1% to 11.2%, and that our Hayes(R) brand's share
went from 0% to .7%. Unfortunately PC Data shows overall modem
sales dollars in the stores they track dropping from $24.5
million in September 1999 to $20.5 million in September 2000
even though unit sales grew from 291,663 to 318,129. However,
we believe that our increased market share will be a significant
advantage to us in future years as V.92 dial-up modems and
broadband modems re-energize the retail channel's sales of
Internet access products."
Zoom ended Q3 2000
with a strong balance sheet, with a current ratio of 4.9,
cash and investment securities of $5.1 million or $0.66 per
share, and stockholders' equity of $4.81 per share.
"Our balance sheet clearly demonstrates the effect of
our entry into the cable and DSL modem markets," said
Frank Manning. "We have increased inventory in an effort
to be a major supplier of broadband products. The opportunities
are big, but so are the challenges, including long lead-times
for components, long product qualification times, and sales
opportunities concentrated in a relatively small number of
very large accounts. Zoom has been quite successful in developing
broadband products, as demonstrated by our CableLabs approvals,
recent PCI cable modem Windows Hardware Qualification Labs
approval, and the start of DSL modem shipments. Now we need
to translate that product development success into sales success.
Because selling this type of product is new to us, it's hard
to predict exactly when we will see substantial shipments
of broadband products. Meanwhile we are expanding our contacts
and getting our products evaluated by a who's who of important
potential customers, andpursuing an aggressive production
schedule that should position us to fulfill demand when it
Zoom has scheduled a Q3 2000 earnings
conference call for Thursday, October 26 at 8:45AM Eastern
Time. The call will be simulcast to stock analysts and other
interested parties on Zoom's website (www.zoomtel.com/Q3) and
numerous leading financial and investor-oriented websites
via the CCBN / BusinessWire 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:
207 South Street
Boston, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: email@example.com.
Zoom's World Wide Web site is www.zoomtel.com