from thestreet.com ....
3Com Thrives in After-Hours
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By Eileen Kinsella
Staff Reporter
9/21/99 8:21 PM ET
Unlike yesterday's earnings news from a certain technology
titan, 3Com (COMS:Nasdaq) was looking shiny in after-hours
trading, up 2 13/16, according to Reuters. The company posted
better-than-expected first-quarter earnings of 33 cents a diluted
share, blowing past the 26-analyst estimate of 24 cents and
better than the year-ago 24 cents.
"While we are by no means content with where we are, we are
quite pleased with our progress from one year ago," 3Com CEO
Eric Benhamou told investors and analysts in a conference call
after 3Com released its numbers. The company grew sales of
network systems 9% to $674.2 million from one year earlier;
sales of PC adapter cards and modems slipped 19% to $539
million.
3Com "just crushed the expenses," partly by scaling back its
marketing of PC adapter cards and modems, said equity
analyst Tim Luke with Lehman Brothers. Luke, whose firm has
no banking ties to 3Com, has a hold rating on the stock.
Benhamou also reiterated plans to license the Palm operating
system, pitch products to big businesses and create a portal
site for handheld users. Sales of handheld computing products
increased 50% to $174.2 million. Since the Palm Computing
subsidiary will issue its own stock early next year, 3Com will be
left with tough prospects. "It's not a revenue growth story," says
Luke.
-- Staff reporter Kevin Petrie contributed to this item. |
