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

To: joe who wrote (17308)	6/12/1998 4:00:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

"3Com Dn 4% On Concerns Over Pricing Pressure In Modem Line" Dow Jones Newswires -- June 12, 1998 (from wsj) NEW YORK (Dow Jones)--3Com Corp. (COMS) shares were down 3.8% Friday on concerns that it's facing pricing pressure in the modem market and that it may still be coping with high inventory levels in this product line, one analyst said. The analyst said he believes the company is being undercut in the modem market by smaller, less well-known manufacturers that are pricing their products at about $80. He added that the company has reduced prices by about 15% to 20% to about $130 "to try to get back market share." Wall Street has had high hopes for 3Com's new standards-based V.90 modems, which are based on the new 56K standard, since many consumers had held off on purchases until the standard was adopted. But pricing pressure and slow adoption of the new 56K technology by Internet service providers have left some analysts concerned that sales of the new modems are not picking up as quickly as hoped. Some have therefore questioned whether 3Com is still dealing with high modem inventories. 3Com was plagued earlier this year by inflated inventory levels in several of its product lines, including modems. Concerns over modem pricing prompted Prudential Securities Inc. analyst Luke Szymczak to cut his earnings estimates earlier to 15 cents a share from 23 cents for the fiscal fourth quarter, ended May; to 65 cents from 76 cents for fiscal 1998; and to $1.35 from $1.65 for fiscal 1999. 3Com earned 12 cents a share in the fourth quarter of last year and $1.41 for the full fiscal 1997 year. 3Com's shares were recently down 15/16 to 24 1/16 on Nasdaq volume of 8.7 million, compared with average daily volume of 6.7 million. Mang