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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: RUDAMON who wrote (15080)	4/29/1998 4:36:00 PM
From: David Lawrence	Read Replies (1) \| Respond to of 22053

BOCA RATON, Fla.--(BUSINESS WIRE)--April 29, 1998--Boca Research, Inc. (NASDAQ:BOCI) today released financial results for the first quarter ended March 31, 1998. Boca reported sales of $15.6 million and a net loss of $2.6 million, or ($0.30) per share, compared to sales of $18.8 million and a net loss of $3.3 million, or ($0.38) per share, in the first quarter of 1997. The sales decrease is primarily attributable to a decrease in sales of data communications products due to excess industry-wide channel inventories of pre-standard 56Kbps product and slower adoption of 56Kbps technology by consumers. First quarter sales were also adversely affected by several other factors, including continued pricing pressure, especially in the OEM channel and also with 33.6Kbps modems. This decrease in sales was partially offset by an increase in sales in the categories of custom manufacturing and Internet access devices which allow for Internet access via a TV or monitor and an analog telephone line. Boca is a market leader of Internet access devices, manufacturing them since mid-1997 for a major consumer electronics company. Currently, Boca is producing customized products for LocalNet Broadcast Network, a multi-level marketing organization, as a training tool for its sales force. Boca recently announced a branded version of its Internet access device, BocaVision, which integrates Citrix Systems' Independent Computing Architecture (ICA(R)) into the product, providing end-users with the ability to run most Windows applications. Boca is one of the first companies to address the needs of the corporate market via an Internet access device, widening its appeal. The Company is placing additional emphasis on this category and expects sales to increase. Tony Zalenski, Boca Research's President and Chief Executive Officer, commented, "Business continued to be weak in the beginning of 1998 and modem sales were slow. It is taking longer than we had hoped for the modem market to show any recovery. Obviously, the transition to 56K technology has been a painful process for us, our shareholders, and the industry, but we remain committed to our basic business strategy. We continue to have confidence in our vision and the strength of our management team and the spirit of our people. "We believe that the announcement of a V.90 standard for 56K transmission speeds will start to regenerate this business. Consumers have been hesitant to upgrade to 56K until there was assurance of universal 56K compatibility with Internet Service Providers," Mr. Zalenski continued. "There are still large amounts of pre-standard inventory in the channels with large rebates being offered; and it is taking longer for ISPs to test the V.90 upgrade to ensure its interoperability. However, we anticipate a pickup in the modem market by the third quarter as ISPs offer access utilizing the new V.90 standard. We plan to promote our products' ease of use and the unique features of our hardware coupled with our value-added software bundles," he concluded.