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: Mehrdad Arya who wrote (34428)	9/22/1999 1:32:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

"BancBoston Robertson Stephens Raises Estimates, Reiterates Buy Rating on COMS" SAN FRANCISCO, Sep 22, 1999 (BUSINESS WIRE) -- BancBoston Robertson Stephens managing director and senior communications/networking analyst Paul Johnson today raised estimates and reiterated his Buy rating on 3COM Corp. (NASDAQ: COMS). The company, headquartered in Santa Clara, Calif., is a leading vendor of Ethernet network adapter boards and desktop modems. "We are raising estimates and reiterating our Buy rating on 3COM, following the company's announcement of than-expected fiscal-first-quarter 2000 financial results," said Johnson. "Revenues in the quarter were basically in-line with expectations, while earnings-per-share of $0.33 was significantly higher than our $0.25 estimate." "In our view, the company managed its operating expenses well in the quarter, despite the lack of revenue growth, with operating expenses dropping 10 percent during the period," said Johnson. "Channel inventories appear to be under control, although it remains management's goal to continue to reduce overall inventories to best manage the transition from older-to-newer products." "In our view, 3Com's management has gotten the ROIC bug. Although we believe the 18 percent level (annualized) in the quarter is modestly impressive, the direction is clearly up," said Johnson. "The improvement has come the old fashion way--very careful control of operating expenses and tight working capital management." "We are raising our fiscal 2000 and fiscal 2001 earnings-per-share estimates from $1.05 to $1.37 and from $1.03 to $1.55, respectively, due to slightly higher revenue expectations and significantly better expense controls," said Johnson. "We are confident that these trends will continue in the near future and believe that 3Com's financial performance may have hit bottom in the May quarter. We are very impressed with management's efforts and believe they are in the process of delivering increased shareholder value." Clients interested in receiving more information should contact their salesperson at 415/781-9700.