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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001600.0%Nov 26 9:30 AM EST

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To: Mang Cheng who wrote (13982)2/17/1998 5:34:00 AM
From: Christopher White  Read Replies (1) of 45548
 
Mang,

Your point about the sell through is right on. Because all the modems that I have seen at retail have had USRobotics logo on the boxes (in fact I have yet to see a modem with '3Com' on the box), I got the feeling that they had been sitting on the shelf for a long while - unlike the Palm Pilot, which had the 3Com logo on the box.

Do you know the mechanics of an inventory write off of the magnitude 3Com did last quarter? When a company writes off channel inventory, do they leave the inventory in the channel, hoping it will sell, or do merchants return it to the company for a credit toward their next purchase?

Christopher
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