To: David Lawrence who wrote (15832 ) 6/3/1998 11:24:00 AM From: Moonray Respond to of 22053
3Com Seeks New Exec To Run Daily Operations San Francisco Chronicle - Wednesday, June 3, 1998 3Com Corp., the Santa Clara computer networking company, said it is recruiting a new senior executive to help manage day-to-day operations. The company has interviewed a handful of candidates since it began the search in late April. Depending on his or her qualifications, the person 3Com hires could become chief operating officer or president, under Eric Benhamou, 3Com's current president, chief executive and chairman. Benhamou is said to be seeking more time to focus on strategic issues while off-loading some of his daily responsibilities. His job has grown far more complex since 3Com acquired U.S. Robotics last year, roughly doubling the company's size and giving it a huge new stake in the consumer market. In addition, 3Com has been buffeted by severe price competition in many of its product lines and by slower than expected demand for its latest generation of 56K modems. The company's slumping profits contributed to a collapse of its share price, from nearly $35 in early May to a close of $24 yesterday. Martin Pyykkonen, an analyst with CIBC Oppenheimer, said 3Com has failed to make up in volume for drastic price cuts on modems and network interface cards, which let computers plug into company networks. The price of such cards has fallen by half over the past year, he said. 3Com has also failed to gain significant market share for higher-end corporate networking equipment, which enjoys higher margins, Pyykkonen said. The challenge for a new chief operating officer, Pyykkonen said, will be to help 3Com improve its manufacturing efficiencies and retail distribution of mass production items like modems. The new hire will also have to find ways to drive new product development without raising expenses and squeezing profits. c1998 San Francisco Chronicle o~~~ O