Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bgg who wrote (34344)	9/21/1999 5:39:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 45548

Exactly ... agreed. Margins benefited also from low cost components. Now component prices are going up again and so repeating these margins will be difficult at best..if not impossible. I suspect that the street will react in a similar fashion to how they handled CS today - who btw showed revenue growth... ;) OG

To: bgg who wrote (34344)	9/21/1999 7:39:00 PM
From: Tim McGee	Read Replies (1) \| Respond to of 45548

Comparisons not accurate. 3Com has once again changed the way the classify numbers so they don't have to answer real questions (such sequential growth FY99Q4 to FY00Q1. They've always had erratic sequential quarter growth b/c they are too lame to figure out how to smooth out revenues. However the comparisons you made here are inaccurate. but revenue was down sequentially from a weak Q4. Client access products down from $630 million in Q4 to $539 million in Q1. Of greater interest is the systems business: down from $784 in Q4 to $674 in Q1. q4 numbers for systems include Palm numbers. Palm revenues were evenly attributed to both client and systems nubmers. They are broken out separately in Q1. You are still correct in saying revenue was down but it was not as drastic as your figures suggest. Add Q1's Palm numbers and sequential Q4 to Q1 revenue goes from $784 to $761. The seasonality exuse they use every other qtr probably accounts for the reduction. Tim