Zoom Telephonics Reports Results
for First Quarter Ending 3/31/99
April 23, 1999 - Zoom Telephonics, Inc. (NASDAQ: ZOOM),
a leading manufacturer of faxmodems and other data communications
products, today reported a net loss for the first quarter
of 1999 of $690 thousand or $.09 per share, versus a net profit
of $200 thousand or $.03 per share for the first quarter of
1998. Zoom reported sales of $11.4 million for its first quarter
ending March 31, 1999, down from $18.8 million for the first
quarter of 1998.
Compared to the first quarter of
1998. The decrease in sales was caused by a decline in modem
unit volume and average selling price. Although sales of 56K
modem units rose significantly, this increase was offset by
the dramatic drop in sales of 33.6K modems.
the quarter with a strong balance sheet, with cash and marketable
securities of $13.0 million or $1.74 per share, and stockholders'
equity of $5.04 per share.
On April 7, 1999 Zoom Telephonics
announced the acquisition of most of the modem assets of Hayes
Corporation for $5.3 million in cash. The purchase included
the Hayes, Practical Peripherals, Accura, Optima, Century
2, and Cardinal brands and product rights for the USA, Canada,
South & Central America, Europe, and the Middle East.
The $5.3 million cash payment is reflected in the $13.0 million
cash position at 3/31/99. Currently Zoom is attempting to
finalize the purchase of some of the remaining Hayes assets,
including Hayes Asia Pacific.
The above reported sales
and net loss for the first quarter of 1999 include a negligible
contribution from the newly acquired Hayes business. The manufacturing
and delivery of Hayes products to customers had been halted
prior to the Zoom purchase. Production of key products has
now been restarted and the Company expects some sales contribution
in the second quarter, with further increases in the second
half of 1999.
"The Hayes purchase comes at an
opportune time for Zoom," said Frank Manning, Zoom's
President and CEO. "The strong Hayes brand and products
should help us to gain market share in the shrinking analog
modem market. This will build a stronger bridge to the high-growth
broadband access market as DSL and cable modem infrastructure
become widely deployed. We believe that Zoom's technology
and market channels will give us a strong competitive position
in these emerging markets."
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 address Investor@
zoomtel.com. Zoom's World Wide Web site is www.zoomtel.com.
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