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ZOOM TELEPHONICS REPORTS RECORD SALES

 BOSTON, Feb. 19 /PRNewswire/ -- Zoom Telephonics Inc. (NASDAQ: ZOOMF) today announced record sales for the quarter and fiscal year ending Dec. 31, 1992.
 ZOOM TELEPHONICS, INC.
 Quarter 4 to Dec. 31,
 1992 1991
 Sales $12,196,456 $8,059,066
 Net income 1,001,304 622,181
 Share earnings 17 cents 11 cents
 Fiscal Year to Dec. 31,
 1992 1991
 Sales $41,895,701 $25,618,878
 Net income 3,586,430 2,261,634
 Share earnings --- ---
 Primary 62 cents 41 cents
 Fully diluted 62 cents 40 cents
 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 Mac Warehouse, Micro United, and Sun TV; but most growth came from increased shipments to Zoom's already established network of PC distributors, retailers, and OEMs.
 Recently one of Zoom's competitors reported that extraordinary component shortages were limiting its sales. Zoom has not been experiencing this problem, due to good planning and strong supplier relationships.
 Zoom's fourth quarter sales of $12,196,456 were a record, 51 percent higher than the prior year's quarter and 9 percent above Zoom's previous record in the third quarter of 1992. The year's sales of $41,895,701 were also a record, and the sixth straight year of growth over 60 percent. Fourth quarter net income of $1,001,304 was 3 percent lower than the record set in the prior quarter, and 61 percent above the net income for the fourth quarter of 1991. Net income for 1992 of $3,586,430 was also a record, 59 percent above 1991.
 Gross margin was 26.8 percent of sales for the fourth quarter of 1992, down from 28 percent for the third quarter of 1992, 27.6 percent for all of 1992, and 33.4 percent for 1991. This decline was due primarily to an increased proportion of Zoom's sales from high-volume customers. Total operating expenses were 13.7 percent of sales for the fourth quarter of 1992, up slightly from 12.6 percent for the third quarter of 1992 and 13.5 percent for the full year. This increase was due primarily to customarily heavy advertising in the fourth quarter, resulting in selling expenses of 8.2 percent of sales for the fourth quarter vs. 7.6 percent for the third quarter and 7.8 percent for the full year. The increase was also affected by an increase in R&D to 1.7 percent for the fourth quarter vs. 1.3 percent for the third quarter and 1.5 percent for the full year, as Zoom expanded its R&D and substantially increased its efforts to complete the design and regulatory approvals of high-speed faxmodems, for Europe. Total operating expenses were down substantially from 19.3 percent for the fourth quarter of 1991 and 18.9 percent for all of 1991, as Zoom's shift to higher volume customers reduced selling expenses as a percentage of sales.
 Net income for the fourth quarter of 1992 was 8.2 percent of sales, versus 9.2 percent for the third quarter of 1992, 8.6 percent for 1992, 7.7 percent for the fourth quarter of 1991, and 8.8 percent for 1991.
 Zoom's balance sheet strengthened considerably during the fourth quarter, as bank debt dropped from $1,635,000 to zero, cash climbed from $605,210 to $2,900,371, and the current ratio jumped from 2.45 to 4.99. This was due primarily to a decrease of inventory by $3,326,936 to $5,878,546, net income of $1,001,304, and exercise of employee stock options resulting in an increase of paid-in capital by $1,217,423 to $4,203,905.
 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 will also introduce faxmodems capable of storing and playing back voice for voice mail and voice annotation of documents, and Zoom has completed the design of the first of these products. Zoom also expects to begin shipping in the second quarter 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.
 -0- 2/19/93
 /CONTACT: Frank Manning of Zoom Telephonics, 617-423-1072/
 (ZOOMF)


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

TM -- NE005 -- 8348 02/19/93 11:12 EST
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Date:Feb 19, 1993
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