Telephonics Q1 1996 Sales Up 63%, Net Income Up 94% Over
April 23, 1996 -- Zoom Telephonics, Inc. (NASDAQ: ZOOM)
today announced sales of $33.2 million and net income of $2.2
million for the Company's first quarter ending March 31, 1996,
up 63% and 94% respectively from the prior year's first quarter.
Earnings per share rose from $.19 for the first quarter of
1995 to $.35 for the first quarter of 1996, above consensus
analyst estimates of $.25.
"These results reflect
strong worldwide faxmodem demand and Zoom's success in growing
our three major marketing channels," said Frank Manning,
Zoom's President and CEO. "We continue to experience
growth in our largest distribution channel, North American
retailers and distributors selling Zoom-brand products. Sales
through our other two channels grew dramatically in the past
year, with sales of Zoom-brand products outside of North America
quadrupling and OEM sales quintupling. These results reflect
Zoom's commitment to being a strong PC communications company
worldwide, for both OEM and after-market sales."
Worldwide OEM sales were 18% of sales and Zoom-brand sales
outside North America were 17% of sales for the quarter ending
March 31, 1996.
The Company's operating margin rose
to 10.9% of sales for the first quarter of 1996 from 9.1%
for the first quarter of 1995. Gross margin of 23.4% for the
first quarter of 1996 was in line with 23.6% gross margin
for the prior year's first quarter, in spite of the shift
to a significantly higher mix of lower-margin OEM sales. This
shift helped lower selling expenses to 8.1% of sales in the
first quarter of 1996 from 9.9% of sales in the first quarter
of 1995. The increased mix of OEM sales and the efficiencies
associated with higher revenues were the primary reasons that
operating expenses fell to 12.5% of net sales for the first
quarter of 1996 from 14.5% of net sales for the first quarter
Zoom ended the first quarter of 1996 with
a strong balance sheet, no long-term debt, and a current ratio
For additional information, please contact
Investor Relations, Zoom Telephonics, Inc., 207 South Street,
Boston, Massachusetts 02111, telephone (617)423-1072, fax
(617)338-5015, E-mail address: Investor@Zoomtel.com.
More First Quarter 1996 financial information: