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ZOOM TELEPHONICS ANNOUNCES RECORD SALES

 ZOOM TELEPHONICS ANNOUNCES RECORD SALES
 BOSTON, April 29 /PRNewswire/ -- Zoom Telephonics, Inc.


(NASDAQ-NMS: ZOOMF) today announced record sales of $8,461,944 for its first quarter, with earnings up 51.1 percent from a year ago to $646,197, due to increased demand for the company's line of faxmodems for personal computers.
 ZOOM TELEPHONICS, INC.
 Quarter 1 to March 31
 (U.S. $)
 1992 1991
 Sales $8,461,944 $3,982,339
 Net income 646,197 427,615
 Share earnings 11 cents 8 cents
 The sales growth was primarily due to increased sales through the company's existing distributors, retailers and OEMs. Sales were strong across Zoom's entire product line, as many of Zoom's largest accounts expanded their assortment of Zoom products to include Zoom's new products, including low and medium-priced faxmodems with V.42bis data compression. Zoom also opened some key target accounts, including Best Buy.
 During the quarter Zoom's backlog rose from $3,406,142 to $5,998,241. The primary limit to shipments was under-projection of demand. During the quarter Zoom brought out a number of new products to replace existing products, and did not want to end up with stock of products that were being phased out. This caused a conservative approach to parts purchasing, which limited shipments. Now that Zoom's new generation of modems and faxmodems has been introduced, Zoom plans to be more aggressive in its projections and production plan.
 Zoom believes that it is the No. 1 faxmodem brand in the world, as measured by unit sales and breadth of product line. Zoom currently sells 11 different faxmodems, with street prices from under $100 to about $350, fax speeds up to 14,400 bits per second (bps), and uncompressed modem data speeds from 2400 bps to 14,400 bps. BIS Strategic Decisions, a market research division of NYNEX, predicts that the U.S. market for faxmodems will grow from 575,000 units in 1991 to 1.2 million units in 1992, and to 2.1 million units in 1994.
 Sixteen of Zoom's modems and faxmodems now include V.42bis, an international data modem standard that increases modem speed and eliminates data errors. Zoom has modems and faxmodems for PC- compatibles and the Macintosh.
 Zoom noted that sales were up 5 percent from the fourth quarter of 1991, the previous record, with earnings up 4 percent. Gross margin declined from 31.6 percent of sales to 26.8 percent due to low margins on some products Zoom has now phased out, and due to increased lower-margin OEM volume. The gross margin reduction was offset by a reduction in selling expenses as a percentage of sales, from 12.9 percent to 8.3 percent, due to higher OEM volume and lower promotional expenses. Pre-tax income for the first quarter of 1992 was $1,075,202, or 12.7 percent of sales, vs. 12.6 percent for the fourth quarter of 1991. Net income was 7.6 percent of sales after a 39.9 percent tax on pre-tax income.
 Management expects that gross margins should increase now that its new generation of products is shipping, even though high OEM sales will moderate this effect.
 Zoom's balance sheet remained strong, with cash of $1,833,183, a current ratio of 2.6, and no debt. Inventory increased 42 percent during the quarter, from $3,212,042 to $4,561,391, as Zoom increased its purchases in preparation for higher shipments.
 For additional information, contact Zoom Telephonics, 207 South St., Boston, MA 02111.
 -0- 4/29/92
 /CONTACT: Frank Manning of Zoom Telephonics, 617-423-1072/
 (ZOOMF) CO: Zoom Telephonics, Inc. ST: Massachusetts IN: CPR SU: ERN


TM -- NE005 -- 4361 04/29/92 12:10 EDT
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Date:Apr 29, 1992
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