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Zoom Telephonics Reports Results
for the Fourth Quarter Ending 12/31/00

Boston, February 8th, 2001 - Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of modems and other data communications products, today reported sales of $16.3 million for its fourth quarter ending December 31, 2000, down 7% from $17.4 million in the fourth quarter of 1999. Sales for the full year 2000 were $59.8 million, down 7% from $64.1 million in 1999.

Zoom reported a net loss of $1.15 million or $.15 per share for the fourth quarter of 2000, versus a net loss of $95 thousand or $.01 per share for the fourth quarter of 1999. For the full year 2000, Zoom reported a net loss of $3.1 million or $.40 per share, versus a net loss of $1.4 million or $.19 per share for 1999. "Over 95% of Zoom's sales during the quarter came from dial-up modems," said Frank Manning, Zoom's President and CEO. "PC Data's research shows that Zoom made large share gains at USA retailers throughout 2000 including the fourth quarter. The revenue share of our Zoom, Hayes, and private label brands rose from 10.4% to 15.4% from December 1999 to December 2000, by far the largest share gain of any modem manufacturer. However, when PC Data looked at total modem sales by all manufacturers at the same retailers, units declined 14% and revenues declined 28% from Q4 1999 to Q4 2000. The new V.92 standard should drive sales growth at retail as V.92 becomes popular. Zoom was the first company to ship V.92 products, and is the leader in the category. As major central site equipment manufacturers begin V.92 shipments beginning in March, and as Internet Service Providers start to offer V.92 later in the year, we expect to see a significant increase in sales in the modem category. If this occurs, we are very well-positioned."

"Zoom has made a major commitment to cable modems, ADSL modems, and advanced networking products," said Mr. Manning. "By the end of 2000 we had three cable modem designs that were CableLabs approved, a very significant accomplishment, and we also had our first two ADSL modems and a new generation of wireless network products ready to ship in volume. We are finding high interest in our broadband and wireless networking products. Although supply has caught up with demand for many broadband product types, we remain optimistic that broadband and advanced networking products can generate significant revenues for Zoom in the months and years to come. We are not counting on our high-volume retailer channels to sell these products, but we do believe that our position in these channels will give us a powerful advantage. Meanwhile we continue to make significant investments in the people, technology, and infrastructure needed to compete in these major growth markets."

Zoom ended the quarter with a strong balance sheet, with a current ratio of 4.0, cash and investment securities of $2.9 million or $.37 per share, and stockholders' equity of $4.74 per share.

Zoom has scheduled a Q4 2000 earnings conference call for Thursday, February 8th at 8:45AM Eastern Time. The call will be simulcast to stock analysts and other interested parties on Zoom's website (www.zoomtel.com/Q4) 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, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: investor@zoomtel.com.
Zoom's World Wide Web site is www.zoomtel.com

This release contains forward-looking information relating to Zoom's plans, expectations and intentions, including statements relating to the V.92 modem market, Zoom's share of the dial-up modem market, Zoom's ability to make required investments, the importance of the high-volume retailer market channel, and Zoom's ability to sell cable modems, ADSL modems, wireless networking, and other advanced networking products. Actual results may be materially different than those expectations as a result of known and unknown risks, including: uncertainty of new product development and introduction, including budget overruns, project delays and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated and other delays in shipments of products; uncertainties inherent in financial projections that, by their nature, are based upon assumptions, many of which are not in the control of the company; Zoom's dependence on one or a limited number of suppliers for certain key components; early stage of development of the cable and DSL data communications markets, and uncertainty of market growth of those markets; rapid technological change; competition; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.
 

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