Sounds like this one is headed for $10:
3Com ready to rework business focus
By Wylie Wong and Dawn Kawamoto
Staff Writers, CNET News.com
April 15, 1999, 4:00 a.m. PT
3Com will soon inject a booster shot into its business in hopes of breaking out of
its financial malaise.
The struggling networking firm will announce specific plans to shift resources away from
the slow-growing analog modem business to emerging and potentially more lucrative
markets, such as digital subscriber line (DSL) and cable modems, home networking, and
wireless access products, according to a source within 3Com.
The announcement--expected later this week--will expand upon 3Com's new strategy
announced last month following a disappointing fiscal quarter.
3Com executives at the time said they planned to move away from the company's
classical strengths in networking cards and analog modems, to focus efforts on nascent
but fast-growing markets, including Internet telephony and the company's successful
PalmPilot line of handheld devices.
"This week we're talking about how we are re-balancing our investments in the
client-access business, away from desktop analog modems, and moving research and
development to accelerating broadband access, home networking and wireless," said the
3Com source. "We will give more specifics on what that means to our investors and how
that translates to growth in the company." |
