Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      3Com Losses Still High

      By
      Matthew Hicks
      -
      March 21, 2002
      Share
      Facebook
      Twitter
      Linkedin

        3Com Corp. late Thursday reported a net loss for its fiscal third quarter that was slightly lower than the loss in the same quarter last year but double that of the second fiscal quarter of this year.

        The Santa Clara, Calif., networking company lost $236.1 million, or 67 cents a share, in the quarter ended March 1. That was 4 percent less than the loss in the third quarter of fiscal year 2001 but more than double the $103.7 million loss a quarter earlier. Sales dropped to $356 million for the quarter, down 9.6 percent from one quarter ago.

        On a pro forma basis, excluding such costs as restructuring charges and the amortization of intangible assets, the Q3 FY2002 net loss was $42.3 million, or 12 cents a share. The per-share loss was 4 cents better than the First Call consen-sus of analysts of 16 cents.

        “For the near term we do not look to improving market conditions to restore profitability,” said Bruce Claflin, 3Com president and CEO, in a conference call. “Rather, it will be through disciplined cost and expense management.”

        3Com had set the fourth quarter of this year as a target for returning to profitability, at least on a pro forma basis. Claflin said that while the company is taking step to reach the goal he couldnt guarantee that it will be achieved because of market conditions. Signs of an economic recovery are less clear in the tech sector and networking, he said.

        There was a bright spot on the enterprise side of 3 Coms business, its Business Networks Company. It contributed $2.7 million in the third quarter to 3Coms overall margins, the only one of its three units with a positive contribution. Sales in that unit, though, were down 1.5 percent from a quarter earlier to $191.5 million. 3Com in recent months has made a renewed push for higher-end enterprise business, announcing a series of new switches and LAN management software.

        Claflin also said that no more mass layoffs, which have marked 3Coms restructuring efforts over the past year, are planned for the next quarter. The company is expecting to cut as many as 100 more employees as part of other cost-cutting measures in the next quarter, said CFO Michael Rescoe, but those job cuts will be in targeted parts of the business.

        Earlier this month, 3Com laid off 550 employees in its Business Connectivity Company unit, and that announce-ment was in addition to a series of layoffs across the company that had begun a year earlier and left thousands of employ-ees jobless. 3Com, which once had 12,500 employees, finished the third quarter with 5,500 employees.

        Matthew Hicks
        As an online reporter for eWEEK.com, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for eWEEK.com. Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.
        Get the Free Newsletter!
        Subscribe to Daily Tech Insider for top news, trends & analysis
        This email address is invalid.
        Get the Free Newsletter!
        Subscribe to Daily Tech Insider for top news, trends & analysis
        This email address is invalid.

        MOST POPULAR ARTICLES

        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Applications

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Applications

        Kyndryl’s Nicolas Sekkaki on Handling AI and...

        James Maguire - November 9, 2022 0
        I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
        Read more
        Cloud

        IGEL CEO Jed Ayres on Edge and...

        James Maguire - June 14, 2022 0
        I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
        Read more
        IT Management

        Intuit’s Nhung Ho on AI for the...

        James Maguire - May 13, 2022 0
        I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2022 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×