News out USTR Denies All Zoom Telephonics Requests for China Tariff Exemptions
Boston, MA - (NewMediaWire) - November 11, 2019 - Zoom Telephonics, Inc. (“Zoom” or “the Company”) (OTCQB: ZMTP), a leading producer of cable modems and other communication products, today reported that the U.S. Trade Representative (USTR) has denied the last of the remaining Zoom requests for tariff exemptions due to severe economic harm caused by those tariffs. Details were not provided by USTR, and Zoom is reviewing its options. The Company’s current plan is to transfer manufacture of the vast majority of its products out of China, with most planned for Vietnam, as detailed in Zoom’s recent conference call for the third quarter of 2019.
Frank Manning, Zoom’s CEO and Chairman, commented: “This news is not surprising; but it is very disappointing due to the severe harm we’ve been experiencing from the China tariffs, which have dramatically impacted our profits, cash flow, allocation of human resources, and stock price. We wish we could provide insight into this USTR decision, but we can’t do that now or possibly ever because we simply don’t understand their decision making in spite of significant efforts. We have been working hard to move most of our production out of China, and that work will continue. Our goal is significant production in Vietnam in the first quarter of 2020, followed by the vast majority of our production in Vietnam in Q2 2020. We are very thankful to the many people who supported our filing including US Congresspeople, Massachusetts state legislators, investors, and Zoom employees. This was a worthwhile effort, and we executed it well. I’m sorry we did not have a better outcome.”
About Zoom Telephonics
Zoom Telephonics, Inc. designs, produces, markets, and supports cable modems and other communication products. For more information about Zoom and its products, please visit www.zoom.net and www.motorolanetwork.com.
Forward Looking Statements
This release contains forward-looking information relating to Zoom’s plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including: the potential increase in tariffs on the Company's imports; potential difficulties and supply interruptions from moving the manufacturing of most of the Company’s products to Vietnam; potential changes in NAFTA; the potential need for additional funding which Zoom may be unable to obtain; declining demand for certain of Zoom’s products; delays, unanticipated costs, interruptions or other uncertainties associated with Zoom’s production and shipping; Zoom’s reliance on several key outsourcing partners; uncertainty of key customers’ plans and orders; risks relating to product certifications; Zoom’s dependence on key employees; uncertainty of new product development, including certification and overall project delays, budget overruns, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; costs and senior management distractions due to patent-related matters; and other risks set forth in Zoom’s filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom’s expectations or any change in events, conditions or circumstance on which any such statement is based.
Investor Relations Contact:
Jeremy Hellman, Vice-President
The Equity Group Inc.
Source: ZOOM TELEPHONICS, INC.
Industries: Tech, Communications