Feeds

3Com announces losses and wants to save $1bn

Ditches 'out-Palming Palm' Net appliance

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

3Com has reported third quarter losses on reduced sales, and announced plans to ditch development of its consumer Net appliance product.

3com's revenues for the quarter ending 2 March were $629.6 million, down 18 per cent on the $766.7 million it reported in its previous quarter. Last year its revenue for Q3 was more than twice as much at $1.42 billion.

This fall in revenue has resulted in 3Com recording a pro forma net loss its third quarter of $122.8 million.

Like many networking firms, 3Com is blaming weak sales to service providers and an overall slowdown in the US economy for its disappointing financial results.

Other factors, such as a shift in demand to lower-margin commercial access products and eroding prices and margins for consumer modems, are also hitting 3Com financially.

In order to turn around its business, 3Com has announced a program of measures designed to achieve annual savings of $1 billion a year. Most of these savings will be achieved by scaling back its broadband modem business and discontinuing its consumer Internet Appliance product lines.

3Com's first Internet appliance, Audrey, was only introduced in October and was positioned by the firm as a device that would "out-Palm Palm".

Such plans are now no more and 3Com will instead concentrate on technologies such as wireless solutions, IP Telephony and Gigabit Ethernet which it sees as key to moving back to profitability.

As previously reported, last month 3Com said it would lay off 1,200 workers, or 10 per cent of its workforce when it revised its sales forecasts for the second time in three months.

In the run up to the announcement of the results, 3Com's MD for UK and Ireland, Adrian Hurel, left the firm for unspecified reasons. His job has been taken up by Paul Malcolm. ®

External links

3Com's results

Related stories

3Com to fall further into red
3Com slashes 1,200 jobs
Debut of 3Com Audrey Net appliance

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.