3Com misses the bar in Q1
Sales up, but not enough for Wall St
3Com fell short of Wall Street’s expectations when it unveiled its third quarter results yesterday.
The networking vendor turned in revenues of $300m, up 69 per cent on the year, but short of the $314m analysts were looking for. The figures were pumped up by the inclusion of figures from its Huawei-3Com joint venture, but the company also said pro forma revenues were up 16 per cent.
Operating losses were $20.9m, compared to the previous year’s $46.7m loss. Net losses were $14m, compared to a $42m shortfall the previous year. This resulted in a loss per share of $0.04, including a $0.04 charge for restructuring amortization and stock-based compensation expenses. Wall Street had been expecting a $0.01 loss per share.
Despite missing Wall Street’s expectations, 3Com pres and CEO Edgar Masri, said he was “pleased” with the figures, particularly the Huwaei and 3Com joint venture and expense control in its Secure Converged Networking business.
Masri said its networking, security, voice and services businesses all grew year on year, but the company needed to “bring a level of consistency to all areas of our business so each group increases sales and profitability.”®