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March 9th

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[3:24 PM]
Another Mac Company Sees Q4 Sales Increase And Profit
Boca Research announced Q4 1998 results that include an 11.4% sales increase and the first profit recorded in several quarters. Boca Research is the maker of Mac modems under the Global Village brand. According to Boca Research:

"Sales for the fourth quarter of 1998 were $18.4 million, an 11.4% increase from sales of $16.5 million for the prior year period. For the fourth quarter, the Company reported a net income of $170,000 or $0.02 per share, compared to a net loss of $7,418,000 or ($0.85) per share in the fourth quarter of 1997.

For the year ended December 31, 1998, sales were $70.0 million, compared to $70.2 million for the year ended December 31, 1997. The net loss for the year was $14.6 million, or ($1.67) per share, compared to a net loss of $14.9 million, or ($1.71) per share, for the prior year."

For all of 1998, the company saw a loss of many millions of dollars, but a 4th quarter of profits is certainly a good sign. Tony Zalenski, Boca Research's president and chief executive officer, attributed some of the profit to cost reductions. According to Mr. Zalenski:

"There were significant decreases in expenses, which included reducing headcount, and we focused on doing fewer things better. We acquired Global Village's(tm) Macintosh(R) modem business, and the Mac(R) modem business continues to command greater margins than Windows(R)-based modems. Also, the Global Village TelePort(tm) modems add volume to our factory and increase our presence in the retail market. As planned, we continued to reduce our inventory level and our number of SKUs, resulting in a net inventory decrease of approximately $5.6 million during 1998."

The Mac Observer Spin: A very subtle transformation has been taking place in the Mac market during the last 6 months. Good news is almost becoming commonplace. Doom and gloom is going away and in its place is announcements of new Mac products and Mac companies making a profit. While this may be bad news (in the short term) for Mac news sites such as The Mac Observer, it is great news for all of us who love our Macs. Profit draws entrepreneurs and established businesses alike and their products draw new Mac users.

Boca Research is certainly one of those success stories since they bought the Global Village brand last year.

Congrats to Boca Research!

Boca Research



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