| Zoom
Telephonics Reports Results
for the Fourth Quarter Ending 12/31/00 Boston,
February 8th, 2001 - Zoom Telephonics, Inc. (NASDAQ: ZOOM),
a leading manufacturer of modems and other data communications
products, today reported sales of $16.3 million for its fourth
quarter ending December 31, 2000, down 7% from $17.4 million
in the fourth quarter of 1999. Sales for the full year 2000
were $59.8 million, down 7% from $64.1 million in 1999.
Zoom reported a net loss of $1.15 million or $.15 per share
for the fourth quarter of 2000, versus a net loss of $95 thousand
or $.01 per share for the fourth quarter of 1999. For the
full year 2000, Zoom reported a net loss of $3.1 million or
$.40 per share, versus a net loss of $1.4 million or $.19
per share for 1999. "Over 95% of Zoom's sales during
the quarter came from dial-up modems," said Frank Manning,
Zoom's President and CEO. "PC Data's research shows that
Zoom made large share gains at USA retailers throughout 2000
including the fourth quarter. The revenue share of our Zoom,
Hayes, and private label brands rose from 10.4% to 15.4% from
December 1999 to December 2000, by far the largest share gain
of any modem manufacturer. However, when PC Data looked at
total modem sales by all manufacturers at the same retailers,
units declined 14% and revenues declined 28% from Q4 1999
to Q4 2000. The new V.92 standard should drive sales growth
at retail as V.92 becomes popular. Zoom was the first company
to ship V.92 products, and is the leader in the category.
As major central site equipment manufacturers begin V.92 shipments
beginning in March, and as Internet Service Providers start
to offer V.92 later in the year, we expect to see a significant
increase in sales in the modem category. If this occurs, we
are very well-positioned." "Zoom has made
a major commitment to cable modems, ADSL modems, and advanced
networking products," said Mr. Manning. "By the
end of 2000 we had three cable modem designs that were CableLabs
approved, a very significant accomplishment, and we also had
our first two ADSL modems and a new generation of wireless
network products ready to ship in volume. We are finding high
interest in our broadband and wireless networking products.
Although supply has caught up with demand for many broadband
product types, we remain optimistic that broadband and advanced
networking products can generate significant revenues for
Zoom in the months and years to come. We are not counting
on our high-volume retailer channels to sell these products,
but we do believe that our position in these channels will
give us a powerful advantage. Meanwhile we continue to make
significant investments in the people, technology, and infrastructure
needed to compete in these major growth markets."
Zoom ended the quarter with a strong balance sheet, with a
current ratio of 4.0, cash and investment securities of $2.9
million or $.37 per share, and stockholders' equity of $4.74
per share. Zoom has scheduled a Q4 2000 earnings conference
call for Thursday, February 8th at 8:45AM Eastern Time. The
call will be simulcast to stock analysts and other interested
parties on Zoom's website (www.zoomtel.com/Q4) and numerous leading
financial and investor-oriented websites via the CCBN / Business
Wire StreetEvents network. Shortly after the conference call,
a recorded broadcast will be available on Zoom's website and
on the StreetEvents network. For additional information,
please contact: Investor Relations,
Zoom Telephonics
207 South Street
Boston, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: investor@zoomtel.com.
Zoom's World Wide Web site is www.zoomtel.com
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