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ZOOM TELEPHONICS, INC. ANNOUNCES SECOND QUARTER RESULTS

 BOSTON, July 29 /PRNewswire/ -- Zoom Telephonics, Inc. (NASDAQ-NMS: ZOOMF), a faxmodem manufacturer, today announced record sales and earnings for its second quarter and six months ending June 30, 1993.
 ZOOM TELEPHONICS INC., BOSTON
 Quarter 2 to June 30
 1993 1992
 Sales $14,684,019 $10,080,362
 Net Income 1,244,186 908,719
 Share Earnings 21 cents 16 cents
 Six Months to June 30
 1993 1992
 Sales $28,345,729 $18,542,306
 Net Income 2,379,815 1,554,915
 Share Earnings 40 cents 27 cent
 Zoom noted that sales of its faxmodems continued to grow for Zoom's major marketing channels -- personal computer products retailers, distributors, and OEMs in North America. Sales were particularly strong for high-speed 14.4 Kbps V.32bis faxmodems, including faxmodems for IBM PC-compatibles and the Macintosh.
 Zoom's second quarter sales were 46 percent higher than the prior year's quarter, the thirteenth record quarter in a row. Six-month sales were also a record, 53 percent higher that the first six months of 1992.
 Gross margin for the first six months of 1993 was 25 percent vs. 27.8 percent for the first six months of 1992. This decline was due primarily to a higher mix of OEM sales, which are characterized by lower margins and lower selling expenses. Gross margin was 25.9 percent of sales for the second quarter of 1993, down from 28.6 percent in the second quarter of 1992 but up from 24 percent for the first quarter of 1993. The recent increase in gross margin was due to Zoom's success in reducing its unit costs slightly faster than its selling prices.
 Total operating expenses for the first six months of 1993 were 11.6 percent of sales, down from 14.0 percent for the first six months of 1992 as operating expenses rose more slowly than sales. Operating expenses were 11.8 percent of sales for the second quarter of 1993, down from 13.7 percent for the second quarter of 1992 and up slightly from 11.4 percent for the first quarter of 1993. The recent quarter-to- quarter increase was due to a rise in selling expenses from 6.1 percent of sales to 6.8 percent as Zoom increased its cooperative advertising.
 Net income was 8.4 percent of sales for the first six months of 1992 and 1993, as the decrease in operating expenses as a percentage of sales offset the lower gross margin. Net income was 8.5 percent of sales for the second quarter of 1993, vs. 9.0 percent for the second quarter of 1992 and 8.3 percent for the first quarter of 1993.
 Zoom's balance sheet remained strong. The current ratio improved from 2.93 to 4.04 during the second quarter of 1993, primarily because accounts payable decreased from $5,248,395 to $3,287,444 while accounts receivable and inventory held steady. Bank debt remained at zero, and cash decreased from $4,896,326 to $3,477,869 during the quarter.
 During the quarter Zoom resolved its dispute with Hayes with no material financial impact. All of Zoom's current products incorporate a licensed Hayes-compatible guard time.
 Zoom noted that its record sales occurred in a quarter in which Zoom did not ship any new products; and that during the third quarter Zoom will begin shipping a number of new products. In July Zoom began shipping its first approved faxmodems for the United Kingdom, and in August Zoom will ship approved faxmodems for Germany and Sweden. In August Zoom will begin shipping the first of a number of medium-speed and high-speed faxmodems able to store and play back voice for voice mail and other voice functions. In September and October Zoom plans to ship pocket and Macintosh Powerbook high-speed faxmodems and voice faxmodems. Zoom also plans to introduce PCMCIA faxmodems as well as V.FAST Class 19.2 Kbps and 24 Kbps faxmodems in 1993.
 Zoom recently hired a National Sales Manager, Cheryl Rossetti, with considerable experience in selling faxmodems and other computer products to personal computer products distributors and retailers.
 For additional information please contact Zoom Telephonics, 207 South Street, Boston, Mass., 02111, 617-423-1072.
 -0- 7/29/93
 /CONTACT: Maryann Veronesi of Zoom Telephonics, 617-423-1072/
 (ZOOMF)


CO: Zoom Telephonics ST: Massachusetts IN: CPR SU: ERN

CM-DJ -- NE019 -- 7213 07/29/93 12:49 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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