Feeds

3Com Q4 results up tenfold

But still disappointing, said company execs

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.