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Zoom Technologies Reports Results
for the Fourth Quarter Ending 12/31/02
Boston, February 11, 2003 —Zoom Technologies,
Inc. (NASDAQ: ZOOM),
a leading manufacturer of modems and other data communication
products, today reported sales of $8.2 million for its fourth
quarter ending December 31, 2002, down 14.2% from the fourth
quarter of 2001. Sales for the full year 2002 were $37.3 million,
down 10.3% from $41.6 million in 2001. Zoom reported
a net loss of $0.5 million or $.07 per share for the fourth
quarter of 2002, compared to a net loss of $5.0 million or
$.63 per share for the fourth quarter of 2001. Zoom reported
a net loss of $5.1 million or $0.65 per share for 2002, versus
a net loss of $18.3 million or $2.33 per share for 2001. The
fourth quarter of 2002 had higher gross profit and lower operating
expenses than the fourth quarter of 2001. Gross profit increased
from 12.9% of revenue to 29.1%, and operating expenses decreased
from 64.5% of revenue to 35.2%. Zoom’s cash balance
on December 31, 2002 was $7.6 million or $0.97 per share,
up $2.4 million from December 31, 2001. On December 31, 2002
Zoom had a current ratio of 5.0 and stockholders’ equity
of $13.5 million or $1.72 per share. “Zoom’s
revenues were hurt by the soft computer products retail market,”
said Frank Manning, Zoom’s President and CEO. “We
were particularly pleased with the strength of our ADSL and
cable modem sales in Europe. However, we believe that this
European strength and our shipment of cable modems to Best
Buy in January of 2003 positions us to enjoy significant growth
in our sale of broadband modems. We have continued Zoom’s
program of careful asset management and expense control, while
continuing to invest in dial-up and broadband modems. The
result has been significantly lower losses and exciting new
products. Overall the computer products market remains challenging,
but we believe we are taking the right steps to meet the challenge.”
Zoom has scheduled a Q4 2002 earnings conference call for
Tuesday, February 11 th at 5:00 p.m. Eastern Time. The call
will be simulcast to stock analysts and other interested parties
on Zoom's website (www.zoomtel.com/Q4) and other
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.
For additional information, please contact:
Investor Relations,
Zoom Technologies
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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