Feeds

3Com Q4 results up tenfold

But still disappointing, said company execs

  • alert
  • submit to reddit

The essential guide to IT transformation

3Com yesterday recorded a tenfold increase in profitability when it posted its Q3 1999 results, a figure that matched the company's warning, made earlier this month, that profits would be down. Revenue for the quarter, which ended on 26 February, was $1.411 billion, up 13 per cent on the same period last year. 3Com posted a quarterly profit of $89.6 million, well up on the $7.4 million it made in Q3 98. The company's profit figure includes a $7.3 million credit related to "changes in previously recorded merger and restructuring expenses", balanced by $7.1 million charge for its acquisition of Smartcode Technologie and assets of ICS Networking. Despite the increase in sales and profitability, 3Com COO Bruce Chaflin still described the results as disappointing. "The question is not whether we are improving [the company clearly is, after all], but are we improving at the rate that was expected?" he said. Hitting 3Com's ability to improve quickly enough was a major downturn in sales of client access products such as modems and NICs. These products accounted for half of the company's sales, but the money it made from those sales increased just one percentage point on Q3 98. Sales of its higher-end systems products increased 28 per cent. Sales of 3Com's high-profile Palm products were down too, but that was expected, claimed Chaflin, because of the strong sales recorded in the run-up to Christmas. 3Com CFO Christopher Paisley said that the company was expecting to post better results next time. "Q4 is a historically strong quarter for 3Com. We expect that to be the case this year," he said. However, he warned that it might not be enough to put 3Com back where it would have been had Q3 been better. "Sequential sales growth in Q4 will be modest this year," he predicted. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?