Please enter a search criteria.

EX-99.1 2 zmtp_ex991.htm PRESS RELEASE Blueprint
  Exhibit 99.1
Zoom Telephonics Reports 191% Sales Increase for Q42016
 
Boston, MA, March 2,2017 – Zoom Telephonics,Inc. (“Zoom”) (OTCQB: ZMTP), a leading producer ofcable modems and other communication products, today reportedfinancial results for the fourth quarter and year ended December31, 2016.
 
TheCompany reported net sales of $5.1 million for the fourth quarterended December 31, 2016 (“Q4 2016”), up 191% from $1.8million for the fourth quarter ended December 31, 2015 (“Q42015”). Zoom reported a net loss of $990 thousand or $0.07per share for Q4 2016 compared to a net loss of $724 thousand or$0.05 per share for Q4 2015.
 
Grossprofit was $1.4 million or 27.3% of net sales in Q4 2016, comparedto $0.5 million or 27.8% of net sales in Q4 2015.  Theincrease in gross profit in Q4 2016 was due to increased sales,particularly for Motorola brand cable modems and gateways. Grossmargin percentage declined because of a $171 thousand write-down ofinventory for select products due to negotiation of lower costs forthose products.
 
Operatingexpenses were $2.3 million, or 45.5% of net sales in Q4 2016,compared to $1.2 million or 67.9% of net sales in Q4 2015. Sellingexpenses increased $1.3 million to $1.7 million from Q4 2015 to Q42016 due primarily to Motorola trademark costs, new in 2016, andincreased advertising expenses. General and administrative expensesdecreased $114 thousand to $305 thousand from Q4 2015 to Q4 2016due primarily to reduced FCC-related legal expenses and reducedpersonnel and stock option costs. Research and development expensesdecreased $56 thousand to $368 thousand from Q4 2015 to Q4 2016 dueprimarily to reductions in testing and certificationexpenses.
 
Zoom’s net sales of $17.8 million for thefiscal year ended December 31, 2016 (“FY 2016”) were up65.3% from $10.8 million for the fiscal year ended December 31,2015 (“FY 2015”). Zoom reported a net loss of $2.9million or $0.21 per share for FY 2016 compared to a net loss of$833 thousand or $0.09 per share for FY 2015. Gross profit was $5.4million for FY 2016, up $2.0 million from $3.4 million for FY 2015.Gross margin was down slightly to 30.1% in FY 2016 from 31.5% in FY2015 due primarily to increased amortization of certification costsassociated with new products.
 
Operatingexpenses were $8.3 million, or 46.3% of net sales in FY 2016, upfrom $4.1 million or 38.4% of net sales in FY 2015. Sellingexpenses increased $3.6 million to $5.2 million from FY 2015 to FY2016 due primarily to Motorola trademark costs and increasedadvertising expenses. General and administrative expenses increased$312 thousand to $1.5 million from FY 2015 to FY 2016, primarilydue to increased personnel and stock option costs, and increasedaudit and legal expenses. Research and development expensesincreased $180 thousand to $1.5 million from FY 2015 to FY 2016,primarily due to increased personnel costs.
 
 
 
 
Zoomraised gross proceeds of approximately $1.6 million in a privateplacement of common stock in October 2016. On December 31, 2016Zoom had $1.3 million drawn on a $3 million line of bank credit,working capital of $3.4 million, and a current ratio of1.7.
 
“We are pleased with the sales growth we are experiencing dueto our line of high-performance Motorola brand cable modems, strongcustomer reviews for these products, and significantadvertising,” said Frank Manning, Zoom’s President andCEO. “During 2016 we dramatically grew our share of cablemodem sales through Amazon, and Amazon remains a major focus.Another focus is growing our shelf space in the best retail stores,and we’re very pleased that in February 2017 we shipped ourthird Motorola cable modem product to Best Buy stores. We continueto develop exciting new cable modem products, including our firstproduct for the new DOCSIS 3.1 cable modem standard. In January2017 our China master distributor began selling our first Motorolarouter for China. In 2017 we plan to introduce a line of routers,range extenders, and powerline communication adapters consistentwith our worldwide Motorola licensing agreement for cable modemsand gateways, WiFi routers, range extenders, and other consumernetwork products. Besides introducing new cable modem and WiFiproducts, we expect to launch some innovative sensor products laterthis year. Our focus will remain on growing our sales while tryingto reduce our expenses as a percentage of sales. We are proud ofour accomplishments in 2016, and looking forward to continuedgrowth in 2017.”
 
Conference Call
 
Zoomhas scheduled a conference call for Thursday, March 2nd at 5:00p.m. Eastern Time. You may access the conference call by dialing(877) 706-2128 if you are in the USA, and international callers maydial (706) 643-5255. The conference ID is 75356610. A slidepresentation will accompany management’s remarks and may beaccessed five minutes before the conference call atwww.zoomtel.com/s4. Shortly after the conference call a recordingof the call will be available on Zoom’s website atwww.zoomtel.com/r4.
 
 
About Zoom Telephonics
 
Foundedin 1977 in Boston, Zoom Telephonics, Inc. designs, produces,markets, and supports cable modems and other communicationproducts. For more information about Zoom and its products, pleasesee www.zoomtel.com.
 
MOTOROLA and the Stylized M Logo are trademarks or registeredtrademarks of Motorola Trademark Holdings, LLC and are used underlicense.
###
 
 
 
 
Forward Looking Statements
 
Thisrelease contains forward-looking information relating toZoom’s plans, expectations, and intentions. Actual resultsmay be materially different from expectations as a result of knownand unknown risks, including: the potential need for additionalfunding which Zoom may be unable to obtain; declining demand forcertain of Zoom’s products; delays, unanticipated costs,interruptions or other uncertainties associated with Zoom’sproduction and shipping; Zoom’s reliance on several keyoutsourcing partners; uncertainty of key customers’ plans andorders; risks relating to product certifications; Zoom’sdependence on key employees; uncertainty of new productdevelopment, including budget overruns, project delays, and therisk that newly introduced products may contain undetected errorsor defects or otherwise not perform as anticipated; costs andsenior management distractions due to patent-related matters; andother risks set forth in Zoom’s filings with the Securitiesand Exchange Commission. Zoom cautions readers not to place unduereliance upon any such forward-looking statements, which speak onlyas of the date made. Zoom expressly disclaims any obligation orundertaking to release publicly any updates or revisions to anysuch statements to reflect any change in Zoom’s expectationsor any change in events, conditions or circumstance on which anysuch statement is based.
 
Company Contact:
 
Zoom Telephonics
Investor Relations
99 High Street
Boston, MA 02110
617-753-0897
investor@zoomtel.com
 
Investor Relations Contact:
 
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: 203-972-9200
jnesbett@institutionalms.com
 
 
 
 
 
ZOOM TELEPHONICS, INC.
Condensed Balance Sheets
In thousands
(Unaudited)
 
 
 
12/31/16
 
 
12/31/15
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
  $ 180  
  $ 1,847  
Accountsreceivable, net
    2,498  
    1,079  
Inventories,net
    4,927  
    2,785  
Prepaidexpenses and other
    652  
    381  
 
       
       
Totalcurrent assets
    8,257  
    6,092  
 
       
       
Property and equipment, net
    176  
    205  
 
       
       
Other assets
    589  
    573  
 
       
       
Totalassets
  $ 9,022  
  $ 6,870  
 
       
       
LIABILITIES AND STOCKHOLDERS’ EQUITY
       
       
 
       
       
 
       
       
Current liabilities:
       
       
Bankdebt
  $ 1,307  
  $ ––  
Accountspayable
    2,502  
    1,423  
Accruedexpenses
    1,052  
    293  
 
       
       
Totalcurrent liabilities
    4,861  
    1,716  
 
       
       
Totalliabilities
    4,861  
    1,716  
 
       
       
Stockholders’ equity:
       
       
 
       
       
Commonstock and additional paid-in capital
    40,041  
    38,100  
 
       
       
Retainedearnings (accumulated deficit)
    (35,880 )
    (32,946 )
 
       
       
Totalstockholders’ equity
    4,161  
    5,154  
 
       
       
Totalliabilities and stockholders’ equity
  $ 9,022  
  $ 6,870  
 
 
 
ZOOM TELEPHONICS, INC.
Condensed Statements of Operations
In thousands, except for per share data
(Unaudited)
 
 
 
Three Months Ended
 
 
Twelve Months Ended
 
 
 
12/31/16
 
 
12/31/15
 
 
12/31/16
 
 
12/31/15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
  $ 5,146  
  $ 1,771  
  $ 17,834  
  $ 10,790  
Cost of goods sold
    3,739  
    1,278  
    12,467  
    7,388  
 
       
       
       
       
Grossprofit
    1,407  
    493  
    5,367  
    3,402  
 
       
       
       
       
Operating expenses:
       
       
       
       
Selling
    1,668  
    360  
    5,188  
    1,571  
Generaland administrative
    305  
    419  
    1,541  
    1.229  
Researchand development
    368  
    424  
    1,522  
    1,342  
       Totaloperating expenses
    2,341  
    1,203  
    8,251  
    4,142  
 
       
       
       
       
       Operatingprofit (loss)
    (934 )
    (710 )
    (2,884 )
    (740 )
 
       
       
       
       
Other income (expense), net
    (52 )
    (12 )
    (42 )
    (86 )
 
       
       
       
       
Income(loss) before income taxes
    (986 )
    (722 )
    (2,926 )
    (826 )
 
       
       
       
       
Income tax expense
    4  
    2  
    7  
    7  
 
       
       
       
       
Netincome (loss)
  $ (990 )
  $ (724 )
  $ (2,933 )
  $ (833 )
 
       
       
       
       
Earnings (loss) per share:
       
       
       
       
      BasicEarnings (loss) per share
  $ (0.07 )
  $ (0.05 )
  $ (0.21 )
  $ (0.09 )
DilutedEarnings (loss) per share
  $ (0.07 )
  $ (0.05 )
  $ (0.21 )
  $ (0.09 )
 
       
       
       
       
 
       
       
       
       
Weighted average number of shares outstanding:
       
       
       
       
      Basic
    14,460  
    13,340  
    13,908  
    9,471  
Diluted
    14,460  
    13,340  
    13,908  
    9,471