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To: Johnny Canuck who wrote (39610)	5/29/2003 2:31:44 PM
From: j g cordes	Read Replies (1) \| Respond to of 69962

Is RBAK part of that SCO linux lawsuit.. good or bad for its price going forward?

To: Johnny Canuck who wrote (39610)	5/30/2003 4:20:58 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69962

UPDATE - 3Com says fourth-quarter sales to suffer Thursday May 29, 8:39 pm ET (Updates with analyst comment, background, share price; previous NEW YORK) SAN FRANCISCO, May 29 (Reuters) - Network equipment maker 3Com Corp. (NasdaqNM:COMS - News) said on Thursday it expected fourth-quarter sales and gross margin to suffer amid stiff competition and weakness in international markets. Click Here Shares in 3Com fell, in after-market trade to $4.86 after ending regular trading up 28 cents, or 5.4 percent, at $5.50 on the Nasdaq stock market. The Santa Clara, California-based computer network equipment maker said it expected fiscal fourth-quarter revenues in the range of $165 million to $175 million, excluding revenues from its CommWorks unit and expects gross margins in the mid-30 percent range. 3Com in its February-ended fiscal third quarter reported revenues of $245 million. Analysts had on average expected May quarter revenues of $209.65 million, according to tracking service Thomson First Call (News - Websites). The company's fourth quarter ends May 30. "That's a pretty drastic decline," said B. Riley and Co. analyst Wes Cummins of 3Com's sales projection, noting the company is coming under increasing competitive pressure from Cisco Systems Inc. (NasdaqNM:CSCO - News), the networking industry's No. 1 company. Excluding CommWorks, gross margins are expected to be in the mid thirty percent range and adversely impacted by the decline in sales. Connectivity sales are expected to decline by 15 to 20 percent compared to the prior quarter. Enterprise Networking sales are expected to decline by 20 to 25 percent sequentially, due largely to weakness in International regions and competitive pressures. 3Com's fortunes could improve once its planned joint venture with Chinese telecom gear maker Huawei Technologies Ltd., Cisco's top Asian rival, takes shape, Cummins said. Fourth-quarter results will include an after-tax gain of more than $90 million, related to the sale of selected CommWorks assets, 3Com said. The company also said it anticipates write-downs of real estate in the $60 million to $70 million range, primarily associated with the Rolling Meadows, Illinois facility mainly occupied by CommWorks. 3Com said cash and equivalents balances will likely remain above $1.4 billion. An Ethernet standard pioneer, 3Com spun off handheld device maker Palm Inc. (NasdaqNM:PALM - News) in March 2000 and earlier this month stunned Silicon Valley by announcing it would move its headquarters to its Marlborough, Massachusetts, facility, where most of its enterprise operations are located. 3Com is pushing hard into the so-called enterprise market, which includes corporations and government agencies. Its spending on network gear has remained fairly stable while equipment sales to telecom carriers have fallen amid a long-running industry downturn.