More: 3Com Adjusts 1997 Earnings
05:44 a.m. Mar 06, 1998 Eastern
SANTA CLARA, Calif. (Reuters) - 3Com Corp. said Thursday it adjusted
its financial results for 1997, following a review by federal
authorities, to better reflect its 1997 acquisition of modem maker
U.S. Robotics Corp.
3Com, the second-biggest maker of computer networking equipment, also
said the charge it had to take against earnings to cover the cost of
the acquisition was substantially less than what it had estimated when
the merger was completed, in June 1997.
Following the revision, the Santa Clara, Calif., company said it had
net income of $500.5 million, or $1.31 a share on a diluted basis, on
revenue of $5.606 billion for the fiscal year ended May 31, 1997.
Previously, 3Com had reported net income of $597.6 million, or $1.69
a share on a diluted basis, on revenue of $5.604 billion.
3Com also said the charge against earnings for the acquisition was
$270 million, down from the $426 million it had anticipated.
3Com made the adjustments in response to a review by the Securities
and Exchange Commission, the company said.
Dwight, it would appear to me that all your thoughts regarding 3COM's
creative accounting have been validated.
o~~~ O |
