Boca Research Announces First Quarter Results.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--April 26, 1999-- Boca BOCA Building Officials and Code Administrators International, Inc. BOCA Bird Observers Club of Australia BOCA Business Object Component Architecture BOCA Borland Object Component Architecture (Borland) Research, Inc.(R) (Nasdaq:BOCI BOCI Bank of China International BOCI Buckner Orphan Care International ) today announced results for the first quarter ended March 31, 1999. Boca(R) reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $10.7 million and a net loss of $3.8 million, or $0.43 per share, compared to net sales of $15.6 million and a net loss of $3.5 million, or $0.40 per share in the first quarter of 1998. Tony Zalenski, Boca Research's president and chief executive officer, commented, "As previously disclosed, we expected first quarter revenue to be significantly lower than the $18.4 million in revenue that we reported in the fourth quarter. The decline in sales is the direct result of the unexpected timing of the introduction of Apple(R)'s new line of Power Macintosh See Power Mac. (computer) Power Macintosh - Apple Computer's personal computer based on the PowerPC, introduced on 1994-03-14. Existing 680x0 code (both applications and device drivers) run on Power Macintosh systems without modification via a Motorola 68LC040 emulator. (R) G3 minitowers at MacWorld This article is about a technology publication. For the tradeshow, see Macworld Conference & Expo.
Macworld Expo in January 1999, which negatively impacted sales of our existing Global Village(R) TelePort Verb 1. teleport - transport by dematerializing at one point and assembling at another science fiction - literary fantasy involving the imagined impact of science on society transport - move something or somebody around; usually over long distances (tm) modems for Mac(R)s. In fact, because of the introduction of the Universal Serial Bus See USB. (hardware, standard) Universal Serial Bus - (USB) An external peripheral interface standard for communication between a computer and external peripherals over an inexpensive cable using biserial transmission. (USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. ) interface, no modems were available for the Power Mac(tm) G3s until Boca Research began shipping the Global Village TelePort Internal 56K fax/modem in the second half of February. Mac-based modems have been a significant source of revenue for Boca Research since its mid- mid- pref. Middle: midbrain. 1998 acquisition of the modem business of Global Village Communication, Inc." First Quarter Accomplishments and Outlook for 1999 Mr. Zalenski stated, "Although sales were down for the first quarter, Boca Research remains confident regarding the outlook for the balance of 1999. Boca Research was the first manufacturer to announce and ship an internal modem A modem that plugs into an expansion slot within the computer. Unlike an external modem, an internal modem does not provide a series of display lights that inform the user of the changing modem states. The user must rely entirely on the communications program. Contrast with external modem. for the new Power Mac G3s, clear evidence of our ability to respond quickly to changes in the market. We also recently announced the Global Village TelePort USB 56K external fax/modem, which we expect to begin shipping by the end of April. Global Village TelePort modems remain highly regarded and continue to be the No. 1-selling modems for Mac computers. Recent accolades include the Editors' Choice Award by Macworld(R) magazine and MacHome(tm) magazine's Readers' Choice Award. These factors contribute to our confidence in the future. The Global Village brand Macintosh(R) modems command greater margins than Windows(R)-based modems and Boca Research intends to continue to develop products to meet the needs of our loyal Macintosh users. In the first quarter of 1999, we paid off the remaining $2.8 million of debt in cash related to the acquisition of the modem business of Global Village Communication, Inc. As of March 31, 1999, cash and cash equivalents were $2.7 million, and we still have an unused line of credit," Mr. Zalenski said. The company also disclosed that it anticipates receiving an income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. of approximately $2 million in the second quarter of 1999. Mr. Zalenski continued, "Other efforts for 1999 include furthering our strategic relationships with industry leaders such as Citrix(R) Systems, Inc.; Cyrix(R) Corporation, a subsidiary of National Semiconductor(R) Corporation; and Network Computer, Inc. (NCI See Liberate. (tm)). "These relationships position Boca Research to enter new markets including information appliance/entertainment and thin client/corporate enterprise, markets that are expected to have significant potential over the next several years. Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
(hardware) Information Appliance - (IA) A consumer device that performs only a few targeted tasks and is controlled by a simple touch-screen interface or push buttons on the device's enclosure. will expand to over 55 million units by the year 2002, a 78 percent increase in growth from 1998. "In support of this effort, we announced the BocaVision(tm) ST2001 information appliance which we expect to begin shipping in the second quarter, and we began shipping the BocaVision WT120 thin client product. Additional BocaVision thin client and information appliance products are targeted for announcement in 1999. Boca Research plans to market the thin client products through value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs). VAR program recruitment began in the second quarter of 1999 and a special comprehensive VAR program is currently under development. Since the VAR program is still evolving, we do not expect any material revenue contribution from this business until the second half of 1999. The BocaVision family of products builds on our manufacturing expertise and excellence in providing cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , high-quality products with high margins," Mr. Zalenski concluded. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect management's best judgement, based on factors currently known. However, these statements involve risks and uncertainties, including the rate of development of the thin client and information appliance markets generally, the successful development and market acceptance of new products, the degree of competition in the market for such products, competitive pricing practices, the product and channel mix, component costs, and manufacturing efficiencies. Further, a significant portion of the Company's sales are derived from a limited number of customers. Therefore, the loss of one or more customers could adversely impact operating results. These and other risks are detailed in Boca Research's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998, as well as in the Company's periodic filings with the Securities and Exchange Commission (SEC). Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this release. CORPORATE INFORMATION Founded in 1985, Boca Research is a leading provider of hardware and software technology. Boca Research provides communications solutions that enable data transmission, connectivity of devices, and access to applications and information via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , personal computers, and/or server-based environments. The Company designs, manufactures, markets, and supports quality, innovative products that have a cost, performance, and time-to-market advantage. Boca Research markets modems, thin client/server computing computing - computer devices, information appliances, I/O cards See expansion board and PC card. and multiport mul·ti·port adj. Having, relating to, or being a system of multiple ports for injecting fuel separately into each cylinder of an engine. products under the Boca Research name. The Company also markets modems and software under the Global Village brand name. Products are sold worldwide through original equipment manufacturers (OEMs), wholesale distributors, VARs, and retailers. Boca Research is a U.S. corporation headquartered in Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and ventures worldwide. Notes to Editors: For copies of recent press releases from Boca Research via fax, call 800-331-1323. For product or company information via the Internet, visit our Web sites at http://www.bocaresearch.com and http://www.globalvillage.com. Boca Research Inc. and Global Village are registered trademarks and GlobalFax, TelePort and BocaVision are trademarks of Boca Research, Inc. Apple, Mac, Macintosh, and Power Macintosh are registered trademarks and Power Mac is a trademark of Apple Computer, Inc. Windows is a registered trademark of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, . Citrix is a registered trademark of Citrix Systems Citrix Systems' (NASDAQ: CTXS) is an American technology company, based in Fort Lauderdale, Florida, with subsidiary operations in California and Massachusetts, with additional development centers in Australia, India and the UK. , Inc. Cyrix is a registered trademark of Cyrix Corporation, a subsidiary of National Semiconductor Corporation. NCI is a trademark of Network Computer, Inc. All other products and brand names are trademarks of their respective owners. (Financial Tables Follow) -0-
BOCA RESEARCH, INC.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
Mar. 31, Dec. 31,
1999 1998
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 2,703 $ 6,959
Trade receivables, net 9,546 11,549
Inventory, net 9,086 9,246
Prepaid expenses and other current assets 652 637
Prepaid and deferred income taxes 2,310 2,051
-------- --------
Total current assets 24,297 30,442
Property and equipment, net 3,546 3,874
Goodwill and other intangible assets 4,445 4,804
Other assets 672 622
-------- --------
Total assets $ 32,960 $ 39,742
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,436 $ 6,804
Notes payable -- 2,800
Deferred revenue 458 --
Accrued expenses and other current
liabilities 3,608 4,037
-------- --------
Total current liabilities 10,502 13,641
-------- --------
Deferred revenue 91 --
-------- --------
Stockholders' Equity:
Common stock 88 87
Additional paid-in capital 26,116 26,045
Retained earnings (deficit) (3,837) (31)
-------- --------
Total stockholders' equity 22,367 26,101
-------- --------
Total liabilities and stockholders'
equity $ 32,960 $ 39,742
======== ========
BOCA RESEARCH, INC.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months
Ended March 31,
1999 1998
---------- ----------
Net sales $ 10,701 $ 15,616
Cost of goods sold 8,603 15,766
-------- --------
Gross profit (loss) 2,098 (150)
-------- --------
Operating expenses:
Research and development 1,081 577
Selling, general and administrative 4,964 2,980
-------- --------
Total operating expenses 6,045 3,557
-------- --------
Income (loss) from operations (3,947) (3,707)
Non-operating income, net 141 203
-------- --------
Income (loss) before income tax benefit (3,806) (3,504)
Income tax benefit -- --
-------- --------
Net income (loss) ($ 3,806) ($ 3,504)
======== ========
Basic and diluted earnings (loss) per share ($ 0.43) ($ 0.40)
======== ========
Shares used in per share calculation 8,778 8,742
======== ========
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