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Zoom Reports Results For Second Quarter 1997
Boston, July 24, 1997 - Zoom Telephonics, Inc. (NASDAQ:
ZOOM),
a leading manufacturer of faxmodems and other data communications
products, today reported sales of $12.0 million for its second
quarter ending June 30, 1997, down 43% from $21.1 million
for the second quarter of 1996. Six month sales were $30.0
million, down 45% from the same period in 1996. The
financial results for the second quarter and six months are
consistent with the projected results released by Zoom on
July 10, 1997. Zoom reported a net loss for the second
quarter of 1997 of $4.3 million or $.58 per share, versus
net income of $257 thousand or $.04 per share for the second
quarter of 1996. For the first six months of 1997, Zoom reported
a net loss of $5.3 million or $.71 per share, versus net income
of $2.5 million or $.36 or share for the year earlier six
month period. The Company said the transition to new
56K modems had hurt sales, average selling prices, and margins
for its 33.6 Kbps modems; and that 56K modem sales had been
slow. The Company expects 56K modem sales to increase significantly
in the second half of 1997, since the number of K56flex™
compatible Internet Service Providers is expected to dramatically
increase. Zoom ended the quarter with a strong balance
sheet, with a current ratio of 9.9, cash of $13.6 million,
or $1.82 per share, and stockholder's equity of $5.67 per
share. "We remain committed to our basic business
strategy, to focus on being a world class producer of faxmodems
and other high-volume wide-area-network data communications
products," said Frank Manning, Zoom's President and CEO.
"The transition to 56K has been painful, but we still
expect our 56K sales to accelerate during the second half
of 1997 as Ascend, Cisco, Shiva, Livingston, and others roll
out K56flex™ central site equipment. We continue to
invest in the deployment of superb products for the world
market, and we believe this investment will begin to pay off
later this year." 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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