Boca Research reports first quarter results...30% increase in net income, 65% increase in sales.

BOCA RATON, Fla.--(BUSINESS WIRE)--April 23, 1996--Boca Research Inc. (NASDAQ:BOCI) Tuesday announced that sales for its first quarter ended March 31, 1996, were $44,935,000, a 64.8% increase over sales of $27,269,000 for the comparable quarter in 1995.

Net income for the first quarter of 1996 was $2,602,000 or $.29 per share, a 29.9% increase over net income for the same quarter in 1995 of $2,003,000 or $.23 per share. First quarter 1996 earnings per share were negatively impacted by a decline in DRAM component pricing (approximately $.05 per share). -0-

Boca Research Inc., Boca Raton, FL (In thousands except per share data)
                                            1st Quarter
                                          1996      1995
Net Sales                               $44,935   $27,269
Net Income                              $ 2,602   $ 2,003
Net Income per Share                    $   .29   $   .23
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    Tony Zalenski, Boca Research's president and chief executive
officer, noted:  "We are pleased to report strong growth in revenue
and net income compared to the same quarter a year ago.  Our
strategic focus on international and OEM business has continued to
fuel our growth as both areas experienced dramatic success in the
first quarter."
    During the first quarter of 1996, international sales were a
record $16 million and accounted for approximately 37% of net sales
compared to $4 million (15% of net sales) in the comparable first
quarter of 1995 and $14 million (31% of net sales) in the fourth
quarter of 1995.
    Zalenski also commented:  "We are focused on our gross margins.
During the second half of 1996, we are adding products to our
portfolio with `sizzle' -- higher-end products that our customers are
demanding and which will enhance our company's corporate profile and
margins.  We are continuing to strive for the recognition we deserve
as more than a modem company.  To that end, during the second
quarter, we will be continuing our successful advertising campaign on
CNN, increasing the number of spots.
    "Although we have been pleased with our modem margins in terms of
profitability and return on equity, these new products -- including
smart and network managed end-user and central site modems, video
conferencing, and ISDN -- carry higher margins.  They will also
re-enforce our strategy of delivering innovative products at very
attractive prices.  We believe these products will be well received
in the marketplace and will further enhance our shareholder value,"
he concluded.
    Gross margin for the first quarter of 1996 was 20.8%.  The lower
gross margin was the result of several factors:  increasing inventory
reserves for certain products experiencing a rapid decline in selling
price due to their replacement with newer generation products; a
decline in DRAM component pricing (impact of approximately $.05 per
share); and an increase in sales to OEM customers which historically
carry lower profit margins.
    Forward-looking statements included in this news release reflect
management's best judgment based on factors currently known.
However, these statements involve risks and uncertainties including
the successful development and market acceptance of new products, the
degree of competition in the market for such products, the product
and channel mix (wholesale distributors and retailers versus OEMs),
component costs, manufacturing efficiencies, and other risks detailed
in the Annual Report on Form 10-K for the year ended December 31,
1995.  Such risks and uncertainties could cause actual results to
differ materially from those in the forward-looking statements
included in this news release.

CORPORATE INFORMATION
    Boca Research (NASDAQ:BOCI), founded in 1985, is headquartered in
Boca Raton, Florida with international operations and ventures
worldwide.  The company designs, manufactures, markets and supports
quality, cost-effective data communications, multimedia and
networking products to facilitate the transmission of information on
personal computers and computer networks.  The company provides
hardware products augmented with software for use in the corporate,
consumer and small office/home office marketplaces.  Boca's current
board-level enhancement and networking product categories include
data communications (fax/data/voice modems); multimedia (video,
telephony, sound, voice and data); networking; video graphics; and
input/output (I/O), IDE and multiport products.  The company sells
its products worldwide through distributors, original equipment
manufacturers (OEMs), and retailers.
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                        BOCA RESEARCH INC.
                   Consolidated Balance Sheets
                          (Unaudited)
                         (In thousands)

                                      March 31,       Dec. 31,
                                        1996           1995
Assets
Current assets:
   Cash and cash equivalents          $  1,082        $   477
   Trade receivables, net               27,942         22,871
   Inventory, net                       22,749         22,457
   Prepaid expenses and
    other current assets                   998            890
   Deferred income taxes                 2,230          2,230
      Total current assets              55,001         48,925
Property and equipment, net              8,164          7,722
Deferred income taxes, noncurrent          242            242
Goodwill, net                              125            166
Other assets                               586            623
      Total assets                     $64,118        $57,678

Liabilities and Stockholders' Equity
Current liabilities:
   Accounts payable                    $ 9,827        $ 5,837
   Accrued expenses and other
    current liabilities                  3,174          4,628
   Income taxes payable                  1,636            607
      Total current liabilities        $14,637        $11,072

Stockholders' Equity:
   Common stock, par value $.01             85             85
   Additional paid-in capital           23,743         23,470
   Retained earnings                    25,653         23,051
     Total stockholders' equity         49,481         46,606
     Total liabilities and
      stockholders' equity             $64,118        $57,678

BOCA RESEARCH INC.
Consolidated Statements of Income
(Unaudited)
(In thousands except per share data)

                                             Three Months
                                            Ended March 31,
                                             1996     1995

Net sales                                  $44,935   $27,269
Cost of goods sold                          35,568    19,799
    Gross profit                             9,367     7,470
Operating expenses:
   Research and development                    736       524
   Selling, general and administrative       4,711     3,999

      Total operating expenses               5,447     4,523

Income from operations                       3,920     2,947
Non-operating income                           145       182

Income before income taxes                   4,065     3,129
Income taxes                                 1,463     1,126

Net income                                 $ 2,602   $ 2,003

Net income per share                       $   .29   $   .23
Weighted average shares outstanding          9,002     8,692

NOTE TO EDITORS: For additional Boca Research company or product information via fax, please call 800/331-1323. -0-

In the Internet/email address noted in this news release, there is an "at" symbol between galeb and boca.org. In the World Wide Web address noted in this release, there is a double slash between http: and www.bocaresearch.com. These symbols may not appears properly in some systems.

CONTACT: Boca Research Inc., Boca Raton

Gale Blackburn, Investor Relations Manager

407/997-8621 ext. 305 voice

http://www.bocaresearch.com

[e-mail]