Zoom Telephonics Reports Results
for the Third Quarter Ending 9/30/01
October 26, 2001 - Zoom Telephonics, Inc. (NASDAQ: ZOOM),
a leading manufacturer of modems and other Internet access
products, today reported sales of $12.3 million for its third
quarter ending September 30, 2001, down 26% from the third
quarter of 2000. Sales for the first nine months of 2001 were
$33.4 million, down 23% from the first nine months of 2000.
Zoom’s third quarter 2001 sales increased 14% over the
second quarter of 2001, primarily due to growth in sales of
dial-up and cable modems.
Zoom’s operating loss
for the third quarter of 2001 was $1.7 million or $.22 per
share, versus an operating loss of $.2 million or $.03 per
share for the third quarter of 2000. This increased loss was
primarily due to lower sales and a reduction of gross profit
from 38.2% of sales to 27.8%. The reduced gross profit was
offset somewhat by a reduction in operating expenses of $1.2
million due primarily to reduced personnel expenses and lower
variable selling expenses.
Zoom’s net loss for
the third quarter of 2001 was $5.5 million, including a $3.8
million reduction in the Company’s net deferred tax
asset balance because a portion of this asset depends on future
operating results and consequently may not be recovered. Zoom’s
net loss for the third quarter of 2000 was $50 thousand or
$.01 per share.
For the first nine months of 2001,
Zoom reported a net loss of $13.4 million or $1.70 per share,
versus a net loss of $1.9 million or $.25 per share for the
first nine months of 2000.
Zoom ended the third quarter
with a current ratio of 2.4, cash of $5.8 million or $.74
per share, and stockholders’ equity of $23.4 million
or $2.97 per share. Zoom succeeded in reducing its net inventory
to $12.9 million, down from $21.9 million on December 31,
2000 and $13.8 million on March June 30, 2001.
the quarter we made good progress with our cable modems,"
said Frank Manning, Zoom’s President and CEO. "We
received CableLabs approval for our first USB/Ethernet cable
modem, the first in a line of newly designed products. We
also placed our Global Village Ethernet cable modem with CompUSA
and Fry’s, continued to grow our revenues, and made
significant OEM progress. Dial-up modem business was up from
the second quarter of this year, and it now looks like significant
V.92 service rollout should begin to occur early next year.
We also made significant progress toward a launch of new wireless
802.11b products with the goal of best-in-class ease of installation
and use. We remain committed to our customers, and to producing
and supporting great Internet access products."
has scheduled a Q3 2001 earnings conference call for Friday,
October 26th at 8:45a.m. Eastern Time. The call will be simulcast
to stock analysts and other interested parties on Zoom's website
(www.zoomtel.com/Q3) 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
or visit Zoom’s website at www.zoomtel.com.