Feeds

3Com to fall further into red

More woe for network equipment manufacturers

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

3Com has issued a third quarter profits warning that means it will fall further into the red on lower than expected sales.

The networking equipment maker is now pegging revenues for this quarter at between $625 million to $640 million, down from previous forecasts of between $725 million to $750 million. This will result in 3Com making losses of between $235 million to $245 million, about $140 million more than previously forecast.

3Com attributes its sales shortfall primarily to a downturn in the US economy and the continuing impact of the slowdown in the telecom sector that have worked together to reduce demand for the networking equipment it manufactures. Similar reasons has led to profits warnings throughout the networking industry.

Last week 3Com announced the loss of 1,200 jobs. The redundancies are part of a plan by 3Com to reorganise its business and thereby save between $200 million and $250 million.

3Com plans to achieve these savings by making cost reductions in four areas: employment, discretionary costs, product costs and savings in plant, property and equipment. ®

Related stories

3Com slashes 1,200 jobs
Cisco misses its second quarter profit and revenue forecast

External links

More gloom at 3Com

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.