Boca Research Transitions to Software and Systems Solutions-Based Enterprise

Strategic Insights -

Boca Research, Inc. (Nasdaq:BOCI) announced its transition to a software and systems solutions-based enterprise, closing the sale of its manufacturing facilities to Boundless Manufacturing Services, Inc. The company has entered a contract manufacturing agreement with Boundless to outsource its manufacturing, aiming to achieve more favorable manufacturing costs while maintaining quality standards. As part of this transition, Boca Research has reduced its credit limit from $5 Million to $2.5 Million and expects to file a registration statement with the Securities and Exchange Commission for 1,747,965 shares of common stock purchased by Infomatec Integrated Information Systems AG.

Key Takeaways:

  • Boca Research has sold its manufacturing facilities to Boundless Manufacturing Services, Inc. for $1.7 Million in cash and notes.
  • The company has entered a contract manufacturing agreement with Boundless to outsource its manufacturing operations.
  • Boca Research expects to achieve more favorable manufacturing costs while maintaining the same quality standards.
  • The company has reduced its credit limit from $5 Million to $2.5 Million.
  • Boca Research plans to continue developing, marketing, and supporting its current Boca Global products and focus on providing Internet-based software and services.
  • The primary factors for outsourcing manufacturing operations were the change in emphasis away from being primarily a data communications manufacturer and the under-utilization of the plant.
  • Infomatec Integrated Information Systems AG, a significant stockholder, has exercised demand registration rights for 1,747,965 shares of Boca Research common stock.
  • Boca Research has filed forward-looking statements containing risks and uncertainties, including market acceptance of new products and competitive pricing practices.

Statistics:

  • $1.7 Million: The amount paid by Boundless Manufacturing Services, Inc. for Boca Research's manufacturing facilities.
  • 12 months: The specified minimum level of contract manufacturing services for the first period specified in the contract manufacturing agreement.
  • $5 Million: Boca Research's original credit limit under the Loan and Security Agreement with FINOVA Capital Corporation.
  • $2.5 Million: The reduced credit limit for Boca Research under the Loan and Security Agreement with FINOVA Capital Corporation.
  • 1,747,965: The number of shares of Boca Research common stock purchased by Infomatec Integrated Information Systems AG.
  • 1998: The year in which Boca Research filed its annual report on Form 10-K.
  • 1999: The year in which Boca Research signed the Amended Common Stock Purchase Agreement with Infomatec.

Sources:

  • Business Wire, "Boca Research, Inc. (R) Announces Closing of Sale of Manufacturing Facilities" (March 6, 2000)
  • Boca Research Corporate Information, "Founded in 1985"