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

To: David Lawrence who wrote (10907)	12/18/1997 7:56:00 PM
From: David Lawrence	Read Replies (3) \| Respond to of 22053

>>3Com believes its products alone* allow for software upgradability to the new standard for both the modems and the equipment used by service providers, he said.* Has anyone listened to the CC? Is this quoted correctly? Was there any elaboration?

To: David Lawrence who wrote (10907)	12/18/1997 8:47:00 PM
From: Moonray	Respond to of 22053

3Com second-quarter profit narrow(sic) as expected SANTA CLARA, Calif., Dec 18 (Reuters) - 3Com Corp. (COMS.O) Thursday reported a narrow profit for its second fiscal quarter, consistent with its earlier forecast of an earnings shortfall, as 3Com moved to write off excess inventories. 3Com, the second-biggest networking company after Cisco Systems Inc.(CSCO.O), said it earned $15.1 million, or 4 cents a share, on sales of $1.2 billion for the quarter ended Nov. 30. This is sharply lower than the 1996 second-quarter earnings of $115.7 million, or 33 cents a share, on sales of $1.4 billion. Eric Benhamou, chairman and chief executive officer, said 3Com continued to improve its inventory measurement systems and to shift its products to next-generation technologies. Shares of the company fell nearly 10 percent this month after the company issued its profit warning. The stock had already been week(sic) in November as analysts warned of 3Com's rising modem inventory levels and slowing Asia sales. The stock ended Thursday at $33.125, down $1.375 in Nasdaq trading ahead of the earnings report, which was issued after the market closed. The stock was steady in light after-hours activity, and was quoted as high as $33.375, traders said. Sales of networking systems were $621.5 million, or 51 percent of total sales, while access products like network interface cards and modems were $598.8 million, or 49 percent of sales, according to the company. 3Com said this month that it had slashed shipments of its products to distributors and middlemen to cut stockpiles of unsold goods. The company also said its modem sales were weak because of confusion over modem standards and that its sales to Asia were slowing. Prior to its profits warning, Wall Street had expected the Santa Clara, Calif., company to earn 44 cents a share, according to a survey by Zacks Investment Research. Analysts have praised 3Com for having acted decisively to slash inventories by taking a one-time hit to earnings, but some have projected it could take at least one more quarter to burn off excess inventory. o~~~ O