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

To: DX who wrote (12072)	12/11/1997 1:21:00 AM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

The following is a piece of news from last Friday. Looks like everybody is pushing for this standard ITU modem these days and we still have two weeks to create a strong consumer demand for this christmas. With some luck, coms should be able to cut the $200 million excess inventory charges for next qtr with a stronger demand for its x2 modems starting this month. I think the modem standard thing is what popping coms up these few days. Cable modem is a brand new profit center for coms and with the signing of this Canadian deal, seems to be picking up mementum really well also. ********************************************************************* "Cost concerns behind modem pact" By Jim Davis December 5, 1997, 4:00 p.m. PT In April, U.S. Robotics had to halt shipments of modems for a significant period of time in order to reduce inventory at retailers, according to documents filed with the Securities Exchange Commission. Recently, 3Com said that it has reduced the inventory level held by channel partners and revised its inventory practices, moves which will impact its second-quarter 1998 earnings. The company now hopes that a standard will help offset the negative charges. "Our feeling is that we will be shipping standards-based modems during the first quarter of 1998," said Neil Clemmons, vice president of marketing for 3Com's personal communications division. He added that 3Com expects all standards-based modems to be able to dial in to ISPs with either x2 or V.pcm technology in order to prevent disruption to ISPs service rollout plans. news.com Mang