Despite continued overall sagging sales, 3Com Corp. reined in its losses in the second quarter of its fiscal year, which closed last month.
In disclosing Q2 earnings today, officials said revenues rose slightly over Q1, operating expenses fell slightly, and net loss fell to $104 million. "Taken altogether, this past quarter demonstrated substantial progress in 3Coms turnaround," said Bruce Claflin, president and CEO.
The Santa Clara, Calif., companys wireless business improved over the last quarter, according to Michael Rescoe, senior vice president and CFO. While overall sales in the Americas were weak because of the economic downturn and the Sept. 11 events, sales in Asia were up, he said.
Although the company expects to reduce headcount through attrition by the end of its fiscal year, it is putting in place a modest hiring plan that focuses on direct selling. The company will add field specialists in support of "large opportunities," said Claflin.
Looking ahead to the end of the fiscal year, Rescoe said he expects revenue to be "flat to slightly up" in the fourth quarter, as operating expenses are further reduced and a "richer mix of business" enhances sales.