3Com cost cutting pays off
Palms up, modems down
3Com wrongfooted analysts yesterday by posting Q1 net income 38 per cent up on the same period last year. The Street had anticipated flat year-on-year earnings. The profits leap had more to do with cost-cutting, or "operational improvements "than with soaring sales. The company's commodity NIC and modem businesses are continuing their journey south, with sales at $539 million, a 19 per cent decline on Q1 last year. High end sales of switches, hubs, remote access concentrators, routers and network management software are up 9 per cent to $674.2 million from a year ago. Good, but not quite good enough, in a high growth market. Meanwhile Palm salesjumped 50 per cent to $174 million. Last week, 3Com announced its intention to spin-out this division. ®
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