Feeds

3Com issues profit warning

Revenues down, margins squeezed

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

3Com yesterday warned that Q2 earnings will come in below expectations. For the quarter ending November 26, the networking firm expects sales of $149m - $153m, compared to earlier forecasts of $170m - $180m.

Increased competition from Cisco at the telco end of 3Com's product range and Dell at the lower end is having an adverse effect on its business. 3Com's gross margins are expected to be about 35 per cent, compared to prior guidance of around 38 per cent.

Reduced revenues will result in a net loss of between $0.12 to $0.14 per share. That works out at losses of between approximately $44m and $54m. 3Com will announce results for Q205 after the market closes on December 16. ®

Related stories

Enterprise routing market as flat as a pancake
3Com plugs in its fastest LAN switch
Huawei-3Com tie-up approved
3Com losses grow
3Com's staff keeps shrinking

Beginner's guide to SSL certificates

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.