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

To: Scrapps who wrote (10026)	12/3/1997 1:00:00 PM
From: Moonray	Read Replies (3) \| Respond to of 22053

3Com tumbles after profit warning U.S. Robotics marriage blamed for modem backlog By Binti T. Harvey, CBS MarketWatch Wed Dec 03 12:28:36 1997 SANTA CLARA, Calif. (CBS.MW) -- 3Com Corp. is swallowing bitter medicine to cut excess modem inventory inherited from the U.S. Robotics merger, and analysts say that while the marriage may pay off in the long run, the honeymoon is definitely over. "A lot of the problem stems from the accounting system 3Com inherited from U.S. Robotics." Lieu said. "They'll lose a total of $300 million on modems before its all over." He said 3Com is still making only educated guesses about how much inventory will actually have to be reduced, but he said he expects substantial cuts in the third quarter as well. Although 3Com knew about U.S. Robotics' inventory problem, Lieu said, it is only now discovering the extent. "It's like any marriage," he said. "It seems perfect until you wake up the next day and pull the covers off." cbs.marketwatch.com o~~~ O

To: Scrapps who wrote (10026)	12/3/1997 1:07:00 PM
From: Eric	Respond to of 22053

Scrapps Good interview. Looks like the transition to the new model plan will be fast, that is good. Eric

To: Scrapps who wrote (10026)	12/3/1997 1:21:00 PM
From: jhild	Read Replies (3) \| Respond to of 22053

Just finished watching Eric B. and I am a little disappointed that he seemed a little evasive to me. He was very uncomfortable remarking on current and future sales volumes, preferring to fall back on the more prepared aspects of his remarks about inventory modeling. Also it seems that the trouble in Asia is getting to be an old saw now. A few weeks ago, people said COMS wouldn't be so affected as their sales dependency in Asia was only 15%. Now I hear him using it as an excuse, that their sales dependency is in the teens as a percentage. Right now after doing Christmas shopping and listening to Christmas music, I am in a charitable mood, the tech market notwithstanding. I want to believe, but his well chosen words worry me. Not so much what he said - which is on message as to the release yesterday - as what he wouldn't say. What I wanted him to say was "And jhild out there on SI, just hang in there on your COMS position. This inventory thing is a mere short term triffle. You will be amply rewarded in the fullness of time."