1Private and Confidential

ZOOM TELEPHONICS, INC.

Q4/FY 2019 Earnings Presentation

February 2020

official licensee

2

This presentation contains forward-looking information relating to Zoom’s plans, expectations, and intentions. Actual results maybe materially different from expectations as a result of known and unknown risks, including: the increase in tariffs on theCompany's imports from China; potential changes in NAFTA; the potential need for additional funding which Zoom may be unableto obtain; declining demand for certain of Zoom’s products; delays, unanticipated costs, interruptions or other uncertaintiesassociated 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 productdevelopment, including certification and overall project delays, budget overruns, and the risk that newly introduced products maycontain undetected errors or defects or otherwise not perform as anticipated; costs and senior management distractions due topatent-related matters; and other risks set forth in Zoom’s filings with the Securities and Exchange Commission. Zoom cautionsreaders not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoomexpressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect anychange in Zoom’s expectations or any change in events, conditions or circumstance on which any such statement is based.

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Safe HarborForward-Looking Statements

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Chief Executive OfficerINTRODUCTION: Relevant Background Information

• Co-founder, VP, & GM of Scientific-Atlanta/Cisco Cable Home Networking Business Unit(CHNBU)

• E/DOCSIS Cable Modems/Gateways, xDSL, IP STB products• CHNBU shipped over 40M E/DOCSIS Cable Modem/Gateways Worldwide to Service

Providers with >$275M of revenue on an annual basis.

• EVP/COO of SMC Networks• Developed full line of DOCSIS Cable Modem/Gateway products sold Worldwide to Service

Operators• Developed full line of Security, Monitoring, and Home Automation products sold mainly in

North America on an iControl Cloud Platform to Service Providers

• Senior Executive/Advisor at FLEX• Developed Direct-To-Operator strategy for Flex CTG to sell Security, Monitoring, and

Automation products direct to Service Providers• Various sensor devices, hubs, etc….

EDUCATION: BS, Business – Rowan UniversityMBA, Strategic & Financial Mgmt. – University of Georgia

Joe Wytanis

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New Executive Leadership Team (<1yr)

Phil StanhopeCTO & VP, Engineering

• VP of Technology Strategy for Oracle Cloud Infrastructure

• Led the acquisition of a cloud security company and the subsequent launch of OCI’s first hosted security service.

• CTO, Dyn• Expertise includes

engineering, infrastructure, architecture, security, analytics, operations, and emerging technology.

• BS in Computer & Information Science, University of Massachusetts

• COO at SKULLY Technologies• Led an organization that

redesigned and relaunched a high-tech motorcycle helmet.

• VP, Strategy and Corporate Development at FOX Factory

• Led several company growth strategies and acquisitions.

• Head of US/Canada Supply Chain Management at Scientific-Atlanta/Cisco.

• Managed Supply Chain• MBA, University of Texas at

Austin• BBA, Texas Christian University

• VP, Sales at SeaChangeInternational

• Led new Sales identification, market assessment, and client relationships in the Cable Segment.

• VP, US Cable Sales at Arris• Led Sales team delivering

$100M+ in product sales in the US Broadband Provider market.

• Products included IPTV, Customer Premise Equipment, Cloud, and WiFi.

• MSEE, Northeastern University• BSEE, Rutgers University

JohnLauten

SVP, Operations

AllaBerina

VP, Sales

Jacquelyn Hamilton

CFO, Finance

• CFO, Netcracker Technology• Led Accounting, Treasury,

Tax, Financial Planning & Analysis, Business Profitability Management, Payroll, Financial Business Processes, and Systems Development.

• CFO, Intronis• Raised Series B funding,

reduced operating expenses, and managed company financial performance.

• MS (Finance), Boston College• BA (Finance), Simmons College

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2019 Financial HighlightsAccelerating Top Line Growth Driven By Etail And Best Buy;

Tariffs Continue to Impact Results

SALES

Q4 2019 REVENUES+41.6% to

$10.6M

MARGINS

Q4 2019 GROSS MARGIN

36.9% before tariffs; 24.5% after tariffs

PROFITABILITY

Q4 2019NET LOSS

$1.1M;Includes $1.3M

of tariffs

FY 2019 REVENUES

+16.4% to $37.6M

FY 2019 GROSS MARGIN

37.6% before tariffs; 29% after

tariffs

FY 2019NET LOSS $3.3M;Includes $3.2M of

tariffs

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2019 Tariff Impact

TariffN

et In

com

e w

ithou

t Tar

iff

0

200

400

600

800

1000

1200

1400

(800)

(600)

(400)

(200)

0

200

400

600

800

1,000

1Q19 2Q19 3Q19 4Q19

Zoom Net Income Without Impact of Chinese Import Tariffs (in$000)

Net Income Without Tariff Tariff

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$10.8

$17.8

$29.4

$32.3

$37.6

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Quarterly Revenue ($ in millions)

Annual Revenue ($ in millions)

$3.1$2.6

$3.4

$1.8

$2.7

$4.0

$6.0

$5.2$5.2

$6.8

$8.6 $8.9$8.3

$7.5

$9.0

$7.5$8.0 $8.2

$10.9$10.6

$0

$2

$4

$6

$8

$10

$12

Q1 Q2 Q3 Q415 16 17 18 19

Revenue by Year and Quarter

2016 20172015 2018

+ 16.4%

15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 2019

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$ in Millions

Quarterly Gross Profit / Margin

$0.8$1.2

$1.9

$1.4$1.7

$2.2

$3.1 $3.2 $3.3

$2.7

$3.3

$2.4 $2.4$2.8

$3.1

$2.6

30.7% 30.2%32.1%

27.3%

33.7%32.1%

35.7% 36.6%

39.4%

36.3% 36.4%

31.6%30.2%

33.9%

28.8%

24.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

Gross Profit Gross Margin

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Customer Examples

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Market Share of Amazon’s Cable Modem Sales

53.0%

29.0%

8.0%10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Arris Netgear Zoom(Motorola

Brand)

All others

October 2016*

27.0%

43.0%

28.0%

2.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Arris Netgear Zoom(Motorola

Brand)

All others

Week Ending 02/8/2020

* Zoom began selling Motorola-branded cable modems in October 2016

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1. Resolve China tariff situation by moving production from China to Vietnam– Driving to complete transition by end of Q2 2020

2. Launch all new products and services on time (DOCSIS, Mesh, Cellular, MotoManage™)

3. Return the Company to growth and profitability4. Expand ODM/CM Partnerships5. Achieve incremental revenue growth in existing channels; e-tail optimization6. Extend existing Motorola Network Products License and add new product

categories7. Grow Sales within mid tier Cable Operators8. Expand market presence to include Canada and Mexico using Resellers9. Cultivate and grow our Investor Relations activity

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2020 Key Company ObjectivesTo

p 3

Prio

ritie

s

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Vietnam Transition• Zoom is on track with moving the majority of our products to Vietnam in the

first half of 2020. • Our cable modem supplier’s new Vietnam factory is now operational.• We also added a second supplier with an established factory in Vietnam.• We are proceeding with urgency, as moving the production to Vietnam will

end our costly tariff exposure.

Coronavirus• We are closely monitoring the situation with the Coronavirus in China.• While our supplier’s factory is open and operational, we are aware of

component supplier shut-downs across China that may impact our production once component buffer stock is depleted.

• The Coronavirus also impacts travel and logistics within China and between China and Vietnam which could result in additional challenges.

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Supply Chain Update

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Bridge Modems (Data Only)

New products -incorporating

DOCSIS 3.1 Technology

Wireless Gateways

New products -incorporating

DOCSIS 3.1 and including WiFi 6

technology

Wireless Voice Gateways and

EMTA’sNew products -

including DOCSIS 3.1, 3.0,

WiFi 6, Voice, and other exciting

technology

New Products….Better than ever!

WiFi Routers

New products –incorporating WiFi 5/6 and

Mesh technology

WiFi Extenders, Cell Modems,

and Cell RoutersNew products –

incorporating WiFi 6, Mesh, Cellular, and Battery Back

Up technology

MoCA Adapter

New product incorporating

MoCatechnology

DOCSIS Product Solutions Home Networking Product Solutions

NewDesign!

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Wireless Solutions…Better than ever!

Best-in-Class WiFi Product And Service Offering

Mesh Extender(with MotoManage™ Agent)

Gateway with Mesh Capability(with MotoManage™ Agent

& PowerBoost™)

MotoManage™ Application

Motorola TechnicalSupport using

MotoManage™ Cloud

Mesh Extender(with MotoManage™ Agent)

MotoManage™ Whole Home WiFi Coverage

MotoManage™ Cloud

Mesh Controller(with MotoManage™ Agent)

OR

Home Owner

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Technology Trends Help Drive Sales Growth

Subscription & Cloud-based

OfferingsWiFi ax Transfer Speed

= 1,320Mbps

DOCSIS 3.1 for higher cable modem speed Home WiFi Mesh Networking

Advanced Cellular Technology and 5G Future Speed = 10Gbps

Network Management &IoT Security

161616

Thank You!

Investor Relations:Jeremy Hellman, CFAVice PresidentThe Equity Groupjhellman@equityny.com212-836-9626