More: 3Com 2nd-Qtr Profit Rises More Than Expected on Surge in Sales
Santa Clara, California, Dec. 22 (Bloomberg) -- 3Com Corp., the No. 2
networking company, reported better-than-expected fiscal
second-quarter earnings on surging demand for its PalmPilot
computing device and rising Internet-equipment sales.
Profit before a charge for the quarter ended Nov. 30 rose to $133.4
million, or 36 cents a share, compared with restated net income of
$4.02 million, or 1 cent, a year ago. 3Com was expected to earn 31
cents, the average estimate of analysts polled by First Call Corp.
Year-ago figures include results from U.S. Robotics Corp., which
3Com acquired last year.
3Com sold more of its low-cost telephone-based modems and computer
connector cards, used to link PCs to corporate networks.
In addition, the PalmPilot -- the top hand-held electronic
organizer -- is 3Com's fastest-selling product, and analysts expect
it now contributes about 10 percent of total revenue. ''Most of the
growth is coming from the Palm,'' said Patrick Houghton, an analyst
at Sutro & Co., who rates 3Com ''buy.''
Revenue at Santa Clara, California-based 3Com rose 29 percent to $1.54
billion from $1.20 billion a year ago.
3Com restated the year-earlier results in March, at the urging of the
U.S. Securities and Exchange Commission, to more accurately reflect
its acquisition of U.S. Robotics.
3Com shares rose 1 1/2 to 48 5/8. The company reported earnings after
the close of regular U.S. trading.
o~~~ O |
