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

To: Gary Korn who wrote (34395)	9/21/1999 11:03:00 PM
From: mr.mark	Read Replies (1) \| Respond to of 45548

from thestreet.com .... 3Com Thrives in After-Hours Action By Eileen Kinsella Staff Reporter 9/21/99 8:21 PM ET Unlike yesterday's earnings news from a certain technology titan, 3Com (COMS:Nasdaq) was looking shiny in after-hours trading, up 2 13/16, according to Reuters. The company posted better-than-expected first-quarter earnings of 33 cents a diluted share, blowing past the 26-analyst estimate of 24 cents and better than the year-ago 24 cents. "While we are by no means content with where we are, we are quite pleased with our progress from one year ago," 3Com CEO Eric Benhamou told investors and analysts in a conference call after 3Com released its numbers. The company grew sales of network systems 9% to $674.2 million from one year earlier; sales of PC adapter cards and modems slipped 19% to $539 million. 3Com "just crushed the expenses," partly by scaling back its marketing of PC adapter cards and modems, said equity analyst Tim Luke with Lehman Brothers. Luke, whose firm has no banking ties to 3Com, has a hold rating on the stock. Benhamou also reiterated plans to license the Palm operating system, pitch products to big businesses and create a portal site for handheld users. Sales of handheld computing products increased 50% to $174.2 million. Since the Palm Computing subsidiary will issue its own stock early next year, 3Com will be left with tough prospects. "It's not a revenue growth story," says Luke. -- Staff reporter Kevin Petrie contributed to this item.

To: Gary Korn who wrote (34395)	9/21/1999 11:05:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 45548

Gary!!! Yes, other threaders here seem to support your view...and from what I see in aftermarket so far investors seem to like the new as well. For me, I remain unconvinced since losing market share in low margin businesses faster than high margin businesses in not what I consider a good thing. Earnings are good due to cost cutting and low component prices (but of course DRAM prices are up now and Taiwan is going to hurt as well). The days of cost cutting to get earnings up will end quickly. COMS will need to significantly increase revenues (dramatically if one considers COMS without PALM) in order to appease investors going forward. We shall see what happens... as we all know anything can happen these days. OG PS>. Mehrdad??? Who's that?