Zoom Reports Profit For The First Quarter Of 1998
Boston, MA, April 23, 1998 - Zoom Telephonics, Inc.
a leading manufacturer of faxmodems and other data communications
products, today reported net income for the first quarter
ending March 31, 1998 of $200 thousand or $.03 per share,
versus a net loss of $956 thousand or $.13 per share for the
first quarter of 1997. Zoom reported sales of $18.8 million
for the first quarter of 1998, up 5% from $18.0 million for
the first quarter of 1997.
The Company said that sales
benefited from an increase in average selling prices over
both the first quarter and fourth quarter of 1997, as Zoom's
mix of sales continues to shift from 33.6K to 56K modem speeds.
While 33.6K remains an important part of Zoom's sales mix,
56K became the majority of unit sales in the first quarter
Zoom ended the quarter with a strong balance
sheet, with cash of $9.0 million or $1.21 per share, working
capital of $35.5 million, and stockholders' equity of $40.7
million or $5.46 per share.
"Late in 1997 we
began to see significant deployment of 56K central sites compatible
with K56flex, the pre-standard 56K technology in Zoom's
modems, and central site deployment continues to drive increased
sales of our 56K modems," said Frank Manning, Zoom's
President. "We believe that the definition of the V.90
56K modem standard in February of this year will start an
important upgrade cycle, particularly as central sites turn
on V.90 in volume later this year. While we continue to benefit
from a shift toward 56K, our results are being hurt by stock
rotations and lower prices associated with pre-standard 56K,
as we expected. Going forward, Zoom is well positioned, with
strong relationships with major retailers, distributors, Internet
Service Providers, and computer manufacturers, and superb
reviews of our 56K technology. In the past nine months Zoom's
56K modems have won twelve industry awards, and Zoom continues
to be recognized as a leader in providing high-performance
communications products at competitive prices."
For additional information, please contact Investor Relations,
Zoom Telephonics, 207 South Street, Boston, Massachusetts,
02111, telephone (617)423-1072, fax (617)338-5015, e-mail
Zoom's World Wide Web site is www.zoomtel.com.
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