Zoom Technologies Reports Results
for the Second Quarter Ending 6/30/02
Boston, July 24, 2002 —Zoom Technologies, Inc.
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:
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