Feeds

3Com to fall further into red

More woe for network equipment manufacturers

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.