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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: S. M. SAIFEE who wrote (34319)	9/21/1999 5:01:00 PM
From: Elmer Flugum	Read Replies (1) \| Respond to of 45548

marketwatch.newsalert.com

To: S. M. SAIFEE who wrote (34319)	9/21/1999 5:07:00 PM
From: Elmer Flugum	Respond to of 45548

3Com Reports First Quarter Fiscal 2000 Results; Pro Forma Net Income Increases 38% From Year-Ago Quarter Business Wire - September 21, 1999 16:59 SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 21, 1999--3Com Corporation (Nasdaq:COMS) today reported financial results for its first fiscal quarter ended August 27. Net income of $137.5 million ($0.38 per share), on sales of $1.387 billion, included a $23.6 million gain from the sales of investments and a net pre-tax credit of $2.1 million related to the merger with U.S. Robotics, Inc. (USR). These results compare to net income in the first quarter of fiscal 1999 of $93.7 million (or $0.26 per share), on sales of $1.406 billion, which included a net pre-tax credit of $10.2 million related to the merger with USR. Excluding the aforementioned items, pro forma net income in the first quarter of $119.3 million, or $0.33 per share, increased 38 percent from pro forma net income of $86.7 million, or $0.24 per share, reported in the first quarter of fiscal 1999. "Strong first quarter earnings represent another milestone in the company's transformation," said Eric Benhamou, 3Com chairman and CEO. "We are pleased that our emphasis on operational improvements is having a substantial positive impact on our profitability, particularly in our systems business." For the first fiscal quarter, sales of Network Systems products, which include switches, hubs, remote access concentrators, routers and network management software, increased nine percent from the year-ago quarter to $674.2 million. Sales of Personal Connectivity products, which include network interface cards (NICs) and modems, were $539.0 million, a decrease of 19 percent from the year-ago quarter. Sales of handheld computing products increased 50 percent from the same quarter last year to $174.2 million. These results reinforce the company's strategy to transition its business toward high-growth markets including voice over Internet Protocol (VoIP), LAN telephony, wireless access, handheld computing, broadband cable and DSL, and home networking. On September 13, 3Com announced plans to create the world's leading publicly traded handheld computing company with an initial public offering for its Palm Computing subsidiary early next year. 3Com intends to subsequently distribute the balance of the shares of the new publicly traded company to 3Com shareholders. At that time, Mr. Benhamou also reiterated the company's renewed focus on its network infrastructure and connectivity business which is expected to enable 3Com to create more value for shareholders, customers and employees. 3Com continues to be the leading networking company in the small-to-medium size business market. Recently published research reports by Access Media International and Cahners In-Stat showed 3Com as the number one brand for small business products and services. Additionally, the VARBusiness Annual Report Card in the networking hardware category ranked 3Com number one for 1999. Today, in a separate announcement, 3Com moved to extend its lead in the small business market with the introduction of 12 innovative new OfficeConnect(R) networking products with a re-designed, ergonomic and contemporary look, and a simple stacking system that makes it easier for people to share information. Also, 3Com, the only company shipping a LAN telephony solution for small businesses in North America, confirmed today that it has shipped more than 12,000 ports of the NBX(TM) 100 LAN telephony communication system. 3Com's installed base of the largest carriers in North America continues to grow and accounts for its market leading position with nearly 40 percent of the Internet access concentrator market. During the quarter 3Com won several new accounts for data access concentrators, VoIP, and wireless access products. For example, 3Com was selected by Sprint to provide an integral part of the underlying wireless data access technology for their new PCS Wireless Web service. 3Com made significant strides during the quarter in the emerging high-growth broadband cable and DSL markets. Time Warner selected 3Com's cable modems to provide high-speed Internet access and multimedia services for the Los Angeles, Orange County market. 3Com also confirmed that its ADSL G.lite capable product line is interoperable with more than 90 percent of the expected worldwide G.lite market.