Feeds

3Com Q4 results up tenfold

But still disappointing, said company execs

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.