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NEWS! Zoom Telephonics Reports Results for the First Quarter of 2010

Press Release Source: Zoom Telephonics, Inc. On Thursday May 6, 2010, 5:49 pm EDT

BOSTON, MA--(Marketwire - 05/06/10) - Zoom Telephonics, Inc. (OTC.BB:ZMTP - News), a leading manufacturer of modems and other communication products, today reported net sales of $2.5 million for the first quarter ended March 31, 2010, up 6.2% from $2.3 million for the first quarter of 2009. Zoom reported a net loss of $0.3 million or $0.15 per share for Q1 2010, a significant improvement over Zoom's net loss of $0.9 million or $0.49 per share for Q1 2009.

Gross profit was $0.8 million or 30.6% of net sales in Q1 2010, up from $0.5 million or 19.4% of net sales in Q1 2009. The increase in gross profit was primarily due to a shift in sales toward Zoom's higher margin products and reductions in Zoom's manufacturing overhead cost.

Operating expenses were $1.1 million or 45.1% of net sales in Q1 2010 versus $1.4 million or 61.7% of net sales in Q1 2009. Operating expenses in Q1 2010 were lower than Q1 2009 primarily due to lower personnel costs and lower merger-related expenses.

Zoom's cash balance on March 31, 2010 was $1.2 million, down $22 thousand from December 31, 2009. Zoom's $0.3 million loss and $0.1 million increase in inventory decreased cash, and Zoom's $0.2 million decrease in accounts receivable and $0.1 million increase in accounts payable and accrued expenses increased cash. Zoom's current ratio was 2.7 on March 31, 2010. Zoom has no long-term debt.

"We are pleased to be reporting better results due to higher sales, improved gross margin, and lower expenses," said Frank Manning, Zoom's President and CEO. "We will continue to try to drive down our costs, though this is challenging given the new product goals we've set for ourselves. Even more important than expense reduction is growth of our sales through existing products and new products. Soon Zoom expects to begin shipping a new generation of cable modems and ADSL modems, and we are excited by the prospects for these products. We have other innovative products that we plan to announce soon, and overall this is a very active time for new product introductions by Zoom. We are proud of our team and our reseller partners, and are cautiously optimistic about our prospects."

Zoom has scheduled a conference call for Friday, May 7 at 10:00 a.m. Eastern Time. You may access the conference call by dialing [phone]. The conference ID is 73485294. The call will also be simulcast to stock analysts and other interested parties on Zoom's website, www.zoom.com/Q1, and to other financial and investor-oriented websites. Shortly after the conference call, a recording of the call will be available on Zoom's website. For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone [phone], email [e-mail], or visit Zoom's website at http://www.zoom.com/.

About Zoom Telephonics

Zoom Telephonics, Inc. designs, produces, markets, and supports communication products under the Zoom, Hayes®, and Global Village® brands. Zoom is headquartered in Boston, and its European sales and support center is in the UK. Zoom markets its products in over forty countries, and provides multi-lingual support from its offices in Boston and the UK. For more information about Zoom Telephonics and its products, please see http://www.zoom.com/.

http://finance.yahoo.com/news/Zoom-Telephonics-Reports-iw-3083373748.html?x=0&.v=1