<Vicki, I hope Boca doesn't report anything like this>
Zoom Telephonics Projects Results For Second ...
Business WireThursday, July 10, 1997 3:27:00 PM
Zoom Telephonics Projects Results For
Second Quarter Ending 6/30/97
Business Editors
BOSTON--(BUSINESS WIRE)--July 10, 1997-- Zoom Telephonics, Inc.
(NASDAQ:ZOOM), a leading manufacturer of faxmodems and other data
communications products, today projected revenues of approximately
$12 million and a net loss of approximately $4.5 million or $.60 per
share for its second quarter ending June 30, 1997.
The Company said the transition to new 56K modems had hurt the
sales, average selling prices, and margins for its 33.6 Kbps modems;
and that 56K modem sales had been slow. The Company expects 56K
modem sales to increase significantly in the second half of 1997,
since the number of K56flex(tm) compatible Internet Service Providers
is expected to dramatically increase.
Gross margins for the second quarter are expected to be negative,
primarily due to rapidly declining prices causing price protection
credits and inventory write-downs.
The Company's balance sheet remains strong, with cash of
approximately $12 million, an excellent current ratio, and
shareholders' equity of approximately $5.60 per share on June 30,
1997.
"We remain committed to our basic business strategy, to focus on
being a world class producer of faxmodems and other high-volume
wide-area-network data communications products," said Frank Manning,
Zoom's President and CEO. "The transition to 56K has been painful, but
we still expect our 56K sales to accelerate during the second half of
1997 as Ascend, Cisco, Shiva, Livingston, and others roll out K56flex
central site equipment. We continue to invest in the development of
superb products for the world market, and we believe this investment
will begin to pay off later this year."
For additional information please contact Investor Relations,
Zoom Telephonics, 207 South Street, Boston, Massachusetts 02111,
telephone (617)423-1072, fax (617)338-5015, E-mail address
Investor@@zoomtel.com . Zoom's World Wide Web site is www.zoomtel.com |
