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

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?