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Zoom Reports Profit For The First Quarter Of 1998
Boston, April 24, 1997 - Zoom Telephonics, Inc. (NASDAQ:
ZOOM),
a leading manufacturer of faxmodems and other data communications
products, today reported sales of $18.0 million for its first
quarter ending March 31, 1997, down 46% from $33.2 million
for the first quarter of 1996. Zoom reported a net
loss for the first quarter of 1997 of $956 thousand or $.13
per share, versus net income of $2.2 million or $.35 per share
for the first quarter of 1996, as gross profit declined from
$7.8 million to $3.3 million on significantly reduced sales,
while operating expenses rose from $4.1 million to $4.9 million.
Gross margin declined from 23.4% of revenues to 18.2%. Selling
expenses rose $100 thousand to $2.8 million. General and Administrative
expenses rose $229 thousand to $1.1 million, with the largest
increase for information systems. Research and Development
expenses rose $432 thousand, primarily due to headcount increases
to accelerate new product development. "During
the first quarter of 1997 the vast majority of our sales came
from V.34 faxmodems," said Frank Manning, Zoom's President.
"These suffered from severe price competition and reduced
demand, partly due to the transition to 56K. This week we
began shipping K56flex™ modems with programmable digital
signal processors in volume, and we are experiencing strong
demand for these products. Meanwhile we continue to invest
in R&D and infrastructure, looking past the near-term
numbers as we build a strong long-term position in the data
communications market." Zoom ended the quarter
with a strong balance sheet, with a current ratio of 7.2,
cash of $9 million, and an unused $10 million bank line of
credit. 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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