Faith and doubt for a maker of modems

Article Abstract:

The modem maker, Zoom Telephonics, appears as a tempting investment because the stock is cheap at about $9 a share, the company has $12 million in cash with no long-term debt, and its revenues have risen to $100 million in 1996 from $13 million in 1990. However, close examination of the company reveals some problems. Zoom has lost $5.4 million during the first six months in 1997 on a revenue of $30 million, compared with income of $2.5 million on a revenue of $54 million, during the same period in 1996. The reason for the poor performance is the reduction in the demand for 33.6K modems, which forced the company to cut the price of the modems from $99 to $89 and give additional rebates. Another problem facing Zoom is the competition from the expected demand in 56K modems for its earning in 1997 and 1998. However, Internet users are skeptical as to whether 56K modems can give the expected performance.

Management, Planning, Telecommunications equipment industry, Modems, Company analysis, Company business planning, Zoom Telephonics Inc., ZOOM, 33,600bps Modem

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Cable modems: for a few, real speed

Article Abstract:

Cable modems are gaining in popularity among many at-home Internet users who prefer the technology over ISDN as the connection method. The modems are eight to 10 times faster than ISDN lines, which in turn are about four times faster than average modems and telephones. Monthly costs of around $40 are driving demand for a constant, high-speed connection. Cable companies, meanwhile, plan to maintain cable modems's lead over telephone companies's forthcoming DSL technology. DSL compares with and sometimes exceeds cable modems, but costs around 30% and cannot match T-1's 1.5Mbps rate. The number of US cable modem users ranges from 250,000 to 275,000, according to research company CATV Cyberlab. Cable modems's constant Internet connection also influences customers. Location is crucial, as the Yankee Group estimates that only 10% of Internet customers will have access to cable modems by 2000.

Modems, 301-1200 bps, Printed Circuit Assembly (Electronic Assembly) Manufacturing, Usage, DSL, DSL (Digital subscriber line), Cable modems, Broadband modems, Internet access, Cable Modem

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Voice mail vs. answering machine

Article Abstract:

Shoppers can establish criteria when deciding between residential voice mail and an answering machine. Cost is one consideration, as answering machines range from $20 to up to $300 when combined with a cordless telephone. By comparison, approximately 90% of voice mail users pay monthly service charges beginning at $7 in addition to various installation charges. Busy voice mail users can save time by sending one message to numerous destinations, or by deploying a pager-notification option that calls a pager number after each message or following all messages that callers mark as urgent. Drawbacks to voice mail include a usual lack of a notification light of new messages, as well as the ability to screen calls. The number of answering machines, as both stand-alone units and compact models that service traditional and cordless telephones, can overwhelm users.

Telephone Apparatus Manufacturing, Telephone Management Systems, Voice Store & Forward Equip, Equipment and supplies, Voice mail, Telephone management device, Voice mail systems

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