Zoom Reports Profit For The Second Quarter Of 1998
Boston, MA, July 24, 1998 - Zoom Telephonics, Inc.
a leading manufacturer of faxmodems and other data communications
products, today reported sales of $12.1 million for its second
quarter ending June 30, 1998, up 1% from $12.0 million for
the second quarter of 1997. Sales for the first six months
of 1998 were $30.9 million, up 3% from the same period in
Zoom reported a net loss for the second quarter
of 1998 of $1.6 million or $.21 per share, versus a net loss
of $4.3 million or $.58 per share for the second quarter of
1997. For the first six months of 1998, Zoom reported a net
loss of $1.4 million or $.18 per share, versus a net loss
of $5.3 million or $.71 per share for the same period of 1997.
The Company began introducing its V.90 standard 56K
modems in February 1998, which contributed to increased 56K
sales in the second quarter, but was also responsible for
lower prices, price protection, and stock rotation for both
pre-standard 56K and 33.6K modems.
Zoom ended the
quarter with a strong balance sheet, with a current ratio
of 12.5, cash of $16.4 million or $2.19 per share, and stockholders'
equity of $5.24 per share.
"Our sales of 56K
modems in the second quarter of 1998 were predominantly based
on the new V.90 56K modem standard," said Frank Manning,
Zoom's President. "Sales of 33.6K and prestandard K56flex
modems slowed considerably, and the combination of stock rotations,
price reductions, and price protection credits reduced sales
dollars for the quarter. Zoom increased its shelfspace share
to 13.6%, second to 3Com's U.S. Robotics and well above third-place
Diamond's 7.9%, according to the July 1998 "Hot Market
Monitor" by Personal Technology Research. America Online
announced in June that they would reach full deployment of
the V.90 standard in mid-July, and we believe that this and
the rollout of V.90 by Internet Service Providers worldwide
will drive V.90 unit volumes. 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 11 months
Zoom's 56K modems have placed first in ten major industry
awards. 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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