Zoom Telephonics Reports Results for the Fourth Quarter Ending 12/31/00.Business/Technology Editors BOSTON--(BUSINESS WIRE)--Feb. 8, 2001 Zoom Telephonics, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ZOOM), a leading manufacturer of modems and other data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. products, today reported sales of $16.3 million for its fourth quarter ending December December: see month. 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 Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. modems," said Frank Manning Francis Thomas "Frank" Mann (born 3 March 1888 in Winchmore Hill, Middlesex, died 6 October 1964 in Milton-Libourne, Wiltshire) was an English cricketer. He played for Cambridge University, Middlesex and England. , Zoom's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "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 Hayes, river, c.300 mi (480 km) long, rising in a lake NE of Lake Winnipeg, central Manitoba, Canada, and flowing NE to Hudson Bay. It was the chief route used by Hudson's Bay Company traders from Hudson Bay to Lake Winnipeg and the interior; York Factory, an , 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 Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. 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 cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. , ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line 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 broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). and wireless networking See wireless network. products. Although supply has caught up with demand for many broadband product types, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op 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 Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. 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.zoom.com/Q4) and numerous leading financial and investor-oriented websites via the CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network / 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 Investor relations The process by which the corporation communicates with its investors. , Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 423-1072, email investor@zoom.com, or visit Zoom's website at www.zoom.com. This release contains forward-looking information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Zoom's plans, expectations and intentions, including statements relating to the V.92 modem market, Zoom's share of the dial-up modem market, Zoom's ability to make required investments, the importance of the high-volume retailer market channel, and Zoom's ability to sell cable modems, ADSL modems, wireless networking, and other advanced networking products. Actual results may be materially different than those expectations as a result of known and unknown risks, including: uncertainty of new product development and introduction, including budget overruns, project delays and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated and other delays in shipments of products; uncertainties inherent in financial projections that, by their nature, are based upon assumptions, many of which are not in the control of the company; Zoom's dependence on one or a limited number of suppliers for certain key components; early stage of development of the cable and DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary data communications markets, and uncertainty of market growth of those markets; rapid technological change; competition; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Zoom's expectations or any change in events, conditions or circumstance Circumstance or circumstances can refer to:
ZOOM TELEPHONICS, INC.
Consolidated Balance Sheets
( 000's )
DEC 31, DEC 31,
2000 1999
(Unaudited) (Audited)
Assets
Current assets:
Cash and investment securities $ 2,906 $10,408
Accounts receivable, net 7,924 5,409
Inventories 21,897 14,304
Deferred income taxes 5,813 3,969
Prepaid expenses and other 678 560
Total current assets 39,218 34,650
Property and equipment, net 4,581 4,212
Other non-current assets 3,161 4,210
Total assets $46,960 $43,072
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,429 $ 2,703
Accrued expenses 2,415 2,374
Total current liabilities 9,844 5,077
Other non-current liabilities 369 481
Total liabilities 10,213 5,558
Stockholders' equity:
Common stock 28,145 25,780
Retained earnings 8,602 11,734
Total stockholders' equity 36,747 37,514
Total liabilities &
stockholders' equity $46,960 $43,072
ZOOM TELEPHONICS, INC.
Consolidated Statements of Income
( 000's )
(Unaudited)
Three Months Ending Years Ending
12/31/00 12/31/99 12/31/00 12/31/99
Net sales $ 16,272 $ 17,415 $ 59,750 $ 64,088
Cost of goods sold 11,078 10,887 39,404 40,550
Gross profit 5,194 6,528 20,346 23,538
Operating expenses:
Selling 3,379 3,712 12,714 13,571
General and administrative 1,827 1,645 6,228 6,276
Research and development 1,588 1,569 6,249 6,425
Total operating expenses 6,794 6,926 25,191 26,272
Operating profit (loss) (1,600) (398) (4,845) (2,734)
Other income, net 50 246 469 737
Income(loss) before income
taxes on income (1,550) (152) (4,376) (1,997)
Income tax expense(benefit) (401) (57) (1,299) (588)
Net income (loss) $ (1,149) $ (95) $ (3,077) $ (1,409)
Earnings (loss) per share:
Basic $ (0.15) $ (0.01) $ (0.40) $ (0.19)
Diluted $ (0.15) $ (0.01) $ (0.40) $ (0.19)
Average number of shares
outstanding:
Basic 7,860 7,505 7,757 7,483
Diluted 7,860 7,505 7,757 7,483
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