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Zoom Technologies Reports Results
for the Second Quarter Ending 6/30/02

Boston, July 24, 2002 —Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading manufacturer of modems and other data communications products, today reported sales of $9.2 million for its second quarter ending June 30, 2002, up 2.6% from the first quarter ending March 31, 2002, and down 10.1% from the second quarter ending June 30, 2001.

Zoom reported a net loss of $1.2 million for the second quarter of 2002, compared to net losses of $3.5 million for the first quarter of 2002 and $2.6 million for the second quarter of 2001. Zoom reported an operating loss of $1.2 million for the second quarter of 2002, compared to operating losses of $1.8 million for the first quarter of 2002 and $2.5 million for the second quarter of 2001. The operating loss for the first six months of 2002 was $3.0 million compared to the operating loss of $7.7 million for the first six months of 2001. Zoom reported a net loss of $4.7 million or $0.60 per share for the first six months of 2002, versus a net loss of $7.8 million or $1.00 per share for the first six months of 2001.

Zoom's cash balance on June 30, 2002 was $6.1 million, or $.78 per share, up $0.9 million from its cash balance on December 31, 2001. On June 30, 2002 Zoom had a current ratio of 4.5 and stockholders' equity of $13.8 million or $1.76 per share.

"We have reduced our operating losses through aggressive cost-cutting," said Frank Manning, Zoom's President and CEO. "Our focus now is on growing our revenues. An important factor is Zoom's strong V.92 dial-up modem line, and the fact that V.92 is gaining momentum with Internet Service Providers. Recently we have been seeing increased sell-through of our dial-up modems by retailers in the USA, and we have gained market share. We are also encouraged by our recent placement of ADSL modems at retail in the UK, and by our highest unit volume ever for both ADSL modems and cable modems. Our wireless networking products are getting strong reviews, reflecting Zoom's focus on ease of installation and use."

Zoom today announced that its Board of Directors has authorized a stock repurchase program whereby the Company may spend up to $400,000 to repurchase shares of its outstanding common stock. The shares may be repurchased from time to time in open market or private transactions, depending on market and business conditions. Currently the Company has approximately 7.9 million shares outstanding.

Zoom has scheduled a Q2 2002 earnings conference call for Wednesday, July 24th at 4:30 p.m. Eastern Time. The call will be simulcast to stock analysts and other interested parties on Zoom's website (www.zoomtel.com/Q2) 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@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 Zoom's dial-up modem, cable modem, DSL modem, wireless networking, and dialer sales and development activities, the anticipated timing and significance of the V92 service rollout, the anticipated development of Zoom's markets and sales channels, the anticipated level of demand for Zoom's products, the anticipated impact of Zoom's cost-cutting initiatives, and Zoom's financial condition or results of operations. Actual results may be materially different than those expectations as a result of known and unknown risks, including: Zoom's continuing losses; Zoom's ability to obtain additional financing for working capital and other purposes; Zoom's ability to effectively manage its inventory; 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; the early stage of development of the cable and DSL data communications markets, the uncertainty of market growth of those markets, and Zoom's ability to more successfully penetrate those markets, which have been challenging markets with significant barriers to entry; Zoom's dependence on one or a limited number of suppliers for certain key components; 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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