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Zoom Telephonics Reports Results
for First Quarter Ending 3/31/99

Boston, 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.

Zoom ended 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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This press release contains certain forward-looking statements including, without limitation, statements relating to the contribution of Hayes to Zoom's sales, Zoom's potential in the analog modem market, possible expansion and success in the broadband access market, and the company's future performance. These forward-looking statements involve risks and uncertainties, including that there can be no assurance of future opportunities and performance, and other risks and uncertainties indicated from time to time in Zoom's filings with the Securities and Exchange Commission.
 

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