Feeds

Revenues up for loss-making 3Com

H3C venture spurs reversal of fortunes

Secure remote control for conventional and virtual desktops

3Com has reported a second-quarter net loss of $4m for its second fiscal quarter.

This equates to $00.1 per share during the quarter, down from $11m or $0.03 per share a year ago.

The network equipment manufacturer said on Wednesday that revenue for the three-month period ended 1 December was $333m, an 81 per cent increase compared to the same quarter last year.

The company attributed the dramatic rise in revenue to the inclusion of the revenue of its joint venture Huawei-3Com (H3C). Excluding the impact of the deal, 3Com's revenues rose 18 per cent during the quarter.

Last month, 3Com announced it had agreed to buy Huawei Technologies' 49 per cent stake in H3C for $882m. H3C is a Chinese joint venture which was originally established by 3Com and Huawei in November 2003.

3Com's gross profit for the second quarter of fiscal 2007 was $150m, or 45 per cent of revenue, up five per cent year-on-year.

Operating expenses were $160m, which included a $27m reduction in expenses for the firm's Secure, Converged Networking (SCN) segment. This led to an operating loss of $9m compared to $42m for the same three-month period last year.

Second quarter non-GAAP operating income was $10m, a $40m improvement compared to the prior-year quarter's non-GAAP operating loss of $30m.

"In our second fiscal quarter, we continued to show excellent progress in both the H3C and SCN operating segments of our business, delivering on one of our key milestones - non-GAAP operating profitability," 3Com president and chief executive Edgar Masri said.

"Companies that will be successful on a global scale must find new and innovative ways to tap into fast growing economies such as the one in China and other emerging markets. Through H3C and our improving SCN segment, we believe we have the building blocks necessary to create a global technology leader. We must now focus on successfully integrating the best-in-class approaches from both H3C and 3Com to build on this positive momentum and create a sustainable, growing and profitable business." ®

Copyright © 2006, ENN

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?