Feeds

3Com exceeds expectations

But sales are down, so the jury's still out

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

It was good news for 3COM yesterday: Q1 net income was up 32 percent sequentially in its Q1 results, and analysts' expectations had been exceeded. Other ways of looking at the figures are less attractive: the $1.41 billion sales were 12 percent off the year earlier figure, and only 2 percent up on the previous quarter. Net income for the period ending 28 August was $93.7 million, which is certainly better than the $51.2 million loss a year earlier. 3COM's shares went up in after-hours trading by 4 percent. But at around $33, they are still less than half last year's $77 high. The general mood of financial commentators is that 3COM (it used to stand for "computers, communications and compatibility" when Bob Metcalfe -- the inventor of Ethernet -- founded the company) is now positive. 3COM is about half the size of Cisco, its main rival, and has adopted a strategy of going around the edges of Cisco's turf, rather than having head-on confrontations. The practical outcome is that 3COM concentrates on the small-to-medium end of the market, while Cisco has an easier ride at the high end. After a difficult time with excess modem inventory after its acquisition of US Robotics last June, the Palm Pilot is seen to be a very successful acquisition, with sales expected to increase to around $600 million this year, compared to around $225 million last year. The latest rumour is that Intel would like to buy 3COM, but the regulatory obstacles are probably too great to make this a real possibility. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.