3Com reports smaller loss as revenues shrink
3Com has reported a net loss of $53m on revenues of $161m for its third fiscal quarter ending 25 February. The revenue figure was down six per cent on last year's $171m, but the $53m loss is also smaller than the $85m shortfall reported a year ago.
Revenue from enterprise products fell one per cent while connectivity products brought in 40 per cent less revenue than a year ago. The company says it expects this decline to continue, making this market segment gradually less important to its overall performance.
Revenue from the newly acquired TippingPoint accounted for less than two per cent of the total. 3Com says it expects this acquisition to boost its enterprise networking revenues in Q4 when it reports its first full post-acquisition quarter.
Overall, 3Com predicts growth in the "mid-to-high single digits" on a percentage basis in Q4. Increased revenues in the enterprise sector will be partially offset by an expected $5m decline in revenue from desktop and mobile connectivity products.
The company ended the quarter with $883m in cash, cash equivalents and short-term investments. The results in full are here. ®
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