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ZOOM TELEPHONICS ANNOUNCES RECORD SALES AND EARNINGS FOR FIRST QUARTER

 BOSTON, April 28 /PRNewswire/ -- Zoom Telephonics, Inc. (NASDAQ-NMS: ZOOMF) today announced record sales and earnings for its first quarter ending March 31, 1993.
 Zoom Telephonics, Inc., Boston
 Quarter One to March 31
 1993 1992
 Sales $13,661,710 $8,461,944
 Net income 1,135,629 646,197
 Share earnings 19 cents 11 cents
 Net income for the first quarter of 1993 included $76,843 related to FAB 109 implementation. Excluding this item, share earnings were 18 cents and net income was $1,058,786, still a record.
 Zoom noted that sales of its faxmodems continue to grow, particularly high-speed 14.4 Kbps V.32bis faxmodems sold through the personal computer channel. During the quarter Zoom began shipping to Staples and other new accounts, but most growth came from increased shipments to Zoom's already established network of PC distributors, retailers and OEMs.
 During the quarter Zoom took several steps to increase production capacity, including adding a second shift for its production line, expanding its primary contract assembly suppliers from three to four, and increasing its parts orders and inventory. These steps resulted in a significant increase in production capacity by the end of the quarter. Last week Zoom also purchased two of the three buildings it currently occupies, increasing its total available space from 34,000 to 64,000 square feet and its available production space from 26,000 to 45,000 square feet. The purchase price was $882,500, and Zoom expects to spend up to $500,000 additional for improvements, primarily production- related.
 Zoom's first quarter sales of $13,661,710 were a record, 61 percent higher than the prior year's quarter and 12 percent above Zoom's previous record in the fourth quarter of 1992. Zoom's revenues have increased for 12 quarters in a row.
 Gross margin was 24 percent of sales for the first quarter of 1993, down from 26.8 percent for the first quarter of 1992. This decline was due primarily to an increased proportion of Zoom's sales from high- volume customers, as well as price reductions for V.32bis faxmodems. Zoom noted that its cost of goods for these faxmodems has continued to decline, and that Zoom expects further cost reductions in the near future.
 Total operating expenses were 11.4 percent of sales for the first quarter of 1993, down from 14.4 percent for the first quarter of 1992. This decline was due primarily to lower sales and advertising expenses, particularly for Zoom's expanding OEM business, resulting in selling expenses of 6.1 percent of sales for the first quarter of 1993 vs. 8.3 percent for the first quarter of 1992. Zoom's R&D expenses increased 23.5 percent from the first quarter of 1992 to the first quarter of 1993, but still declined as of percentage of sales from 1.9 percent to 1.4 percent.
 Net income for the first quarter of 1993 was 8.3 percent of sales, and 7.8 percent before the profit for FASB 109 implementation. Net income for the first quarter of 1992 was 7.6 percent, and was not affected by FASB 109.
 Zoom's balance sheet remained strong during the first quarter, as bank debt remained at zero and cash climbed from $2,900,371 to $4,896,326. The current ratio declined from 5.0 to 2.9, primarily because accounts payable increased from $1,769,574 to $5,248,395 due to accelerating shipments. For the same reason accounts receivable increased 49 percent to $6,794,363, and inventory increased 18 percent to $6,931,175.
 Zoom expects growth in North America to come primarily from high-speed faxmodems, including new high-speed pocket and Powerbook modems that should ship by mid-year. Zoom also expects to begin shipments soon of faxmodems capable of storing and playing back voice for voice mail and voice annotation of documents. During the second quarter Zoom also plans to begin shipping high-speed faxmodems designed for Europe, and Zoom sees Europe as a substantial opportunity for growth in 1993 and beyond.
 For additional information please contact Zoom Telephonics, 207 South Street, Boston, MA, 02111, telephone 617-423-1072.
 -0- 4/28/93
 /CONTACT: George Simmons or Maryann Veronesi of Zoom Telephonics, 617-423-1072/
 (ZOOMF)


CO: Zoom Telephonics ST: Massachusetts IN: CPR SU: ERN 670 04-28-93 12:26 EDT DJ -- NE012 -- 2058 04/28/93 12:56 EDT
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Date:Apr 28, 1993
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