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Boca takes it on the chin

Hurt by anticipation over 56-kbps modems, Boca Research's income plummets for the fourth quarter and the year.

Boca Research (BOCI) took it on the chin as income plummeted for the fourth quarter and for the year ended December 31.

Boca reported fourth-quarter sales of $29 million, down from $45 million in the same quarter 1995. Net income for the quarter was $65,000, or 1 cent per share, down from $2.9 million, or 32 cents per share, a year ago.

Company executives ascribed the poor results to anticipation of 56-kbps analog modem technology, which has caused consumers to delay their purchases. The slump hurt the company for the third and fourth quarters of 1996 and continues to do so. Boca also predicted a net loss for the first quarter of 1997.

The company's sales for the year were $153.5 million, up from $143 million in 1996. But net income for the year was down at $6.5 million, or 72 cents per share, compared with $9.5 million, or $1.06 per share in 1995.

Boca also incurred costs in its ongoing acquisition of German modem manufacturer Creatrix.

Boca's president and chief executive officer Tony Zalenski said in a statement that the company's situation would turn around once the transition to 56-kbps modem technology has taken place.