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

To: W.F.Rakecky who wrote (15272)	5/7/1998 3:45:00 PM
From: Moonray	Read Replies (1) \| Respond to of 22053

3Com Shares Fall Amid Concern About Sales Growth, Profit Santa Clara, California, May 7 (Bloomberg) -- 3Com Corp. fell as much as 7 percent on concern that sales at the No. 2 computer networking company will continue to fall amid competition from No. 1 Cisco Systems Inc. and other rivals. 3Com fell 2 9/32 to 32 1/8 in midafternoon trading of 21.2 million, making it the third-most active stock in U.S. markets. Earlier, the shares touched 32. Profit at 3Com fell more than 90 percent in the last quarter on lower sales and inventory problems related to its June acquisition of U.S. Robotics Corp. Investors are concerned that the company is losing its share of key markets to Cisco, which on Tuesday reported strong profit and revenue growth. ''There's concern about market share,'' said Richard Slinn, a money manager at Van Kasper & Co., which owns shares of networking companies. While 3Com, Bay Networks Inc. and others reported lower profit amid steep price cuts, Cisco's strong relationship with existing customers lets it sell a range of equipment that helped bolster its profit margin. In addition, computer networking companies are starting to compete for the fast-growing market for equipment sold to phone companies and online service providers. Cisco Chairman John Chambers has said he expects sales to the so-called service provider or carrier market to contribute most of the company's revenue by 2002. ''All networking companies are trying to do this, but it's unclear whether 3Com has been successful yet,'' Slinn said. Santa Clara, California-based 3Com's profit before a gain in the fiscal third quarter ended March 1 fell to $7.41 million, or 2 cents a share, from pro forma profit before a gain of $161.2 million, or 45 cents, in the year-earlier period. Analysts surveyed by IBES International Inc. had expected 3Com to earn 13 cents. By comparison, Cisco's fiscal third-quarter profit before charges rose 35 percent to $483.2 million, or 45 cents a share, compared with profit before a gain of $358 million, or 35 cents, a year ago. o~~~ O