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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: mr.mark who wrote (20468)	3/21/2000 4:15:00 PM
From: Moonray	Respond to of 22053

3Com Falls After Company Says Reorganization Will Hurt Sales Bloomberg - 3/21, 15:21 Santa Clara, California, March 21 (Bloomberg) -- 3Com Corp. shares fell as much as 10 percent after the No. 2 maker of networking equipment said its reorganization plan will hinder sales and profits for a year. 3Com fell 3 9/16 to 65 in midafternoon trading of 12.4 million shares, making it the 13th-most active stock in U.S. markets. The shares dipped to 62 1/8 earlier today. 3Com, which already is spinning off its Palm Inc. electronic organizer unit, said yesterday that it would sell its dial-up modem business and stop making networking gear for big organizations as it exits slower-growth areas. In a meeting with analysts, 3Com President Bruce Claflin said the plan would impede sales and profit for the next year as the company shifts its focus to products in greater demand. ``You're looking at a year here of treading water,' said Bill Becklean, an analyst at SunTrust Equitable Securities, who rates 3Com a long-term ``attractive.' The company expects revenue of $675 million to $750 million in the fiscal fourth quarter that ends in May and an operating loss, including charges, of $450 million to $500 million, Claflin said. That compares with revenue of $1.42 billion and net income of $87.5 million in the year-earlier period. Revenue in 3Com's fiscal first quarter will be ``flat' compared with the fourth quarter, Claflin said. He said 3Com expects ``sequential growth' to begin in the second quarter and positive operating income in the third quarter. By the fourth quarter of fiscal 2001, revenue will be ``growing sequentially in the mid-double digits,' Claflin said. 3Com, based in Santa Clara, California, will focus on computer-connection cards used in homes and offices, networking equipment for small and midsize businesses and gear used by Internet service providers to answer incoming calls. o~~~ O