Feeds

3Com to fall further into red

More woe for network equipment manufacturers

  • alert
  • submit to reddit

Boost IT visibility and business value

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

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.