Boca cuts workforce to stem red ink
The struggling data communications company moves to streamline operations, cutting a minimum of 60 positions.
Boca Research will cut 30 full-time workers and 30 contractors, as well as any positions where there is a duplication of services, according to a company statement.
As of last December the company had 339 full-time employees, according to an annual report filed with the Securities and Exchange Commission.
Over the past year, Boca Research has seen its revenues drop sharply; in the most recent March quarter, it posted a loss for the first time in two years.
Revenues were $18.8 million for the quarter ending March 31, compared with $44.9 million a year ago. Meanwhile, the company reported a loss of $3.3 million for the quarter, compared with a profit of $2.6 million.
The data communications manufacturer has been plagued by low sales and hit with a loss, due to shipment delays of its 56-kbps modem. The delays affected sales as consumers waited on the new technology.
The company has also incurred costs from its acquisition of German modem manufacturer Creatrix.
Company officials were not available to comment.
In a statement to the press, Tony Zalenski, president and CEO of Boca Research, said "The company regrets the effects of this decision on its personnel, and is committed to aggressively pursue the plan its executive team has developed to position the company for future profitability and employment growth."