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To: Ibexx who wrote (17276)	9/22/1998 10:42:00 PM
From: Roads End	Read Replies (1) \| Respond to of 77399

Ibexx..The WSJ isn't spinning COMS in a negative light. What are you seeing so negatively? September 22, 1998 3Com Tops Wall Street Estimates Despite a 12% Decline in Revenue An INTERACTIVE JOURNAL News Roundup 3Com Corp. topped analysts' expectations for first-quarter earnings, despite a 12% decline in revenue from the same period a year ago, as strong sales for new products helped boost the company's profit margins. The Santa Clara, Calif., networking-gear maker said that net income for the three-month period ended Aug. 28 was $93.7 million, or 26 cents a share, compared with a loss of $51.2 million, or 15 cents a share, in the year-earlier quarter. Revenue, meanwhile, declined 12% to $1.41 billion from $1.60 billion. The current quarter's results include a pretax gain of $10.2 million, or two cents a share, related to its acquisition of U.S. Robotics Corp. in 1997. Without that gain, operating income was $86.7 million or 24 cents a share, topping the consensus estimate of analysts surveyed by First Call of 20 cents a share. The loss in the year-ago period included a one-time charge of $269.8 million, or 62 cents a share, also related to the merger with U.S. Robotics. Excluding that charge, net income for 1997's first quarter was $169.6 million, or 47 cents a share. In Nasdaq Stock Market trading Tuesday, shares of 3Com rose 31.25 cents to $32.375. The earnings announcement came after the close of trading; in after-hours trading, shares of 3Com rose $1.25 to $33.625, according to Instinet. Eric Benhamou, 3Com's chairman and chief executive officer, said he was satisfied with 3Com's continued efforts to streamline operations and stabilize revenue generation. "We are starting to see the benefits of our new product cycle through stronger sales of recently introduced products across our four customer markets -- large enterprise, small-medium enterprise, carrier and service provider, and consumer/SOHO," he said. 3Com's first-quarter systems-products sales were $683.6 million, up 2% from the fourth quarter. Sales of client-access products rose 3% from the fourth quarter to $721.9 million. Prior to the announcement, most experts were interested in 3Com's inventory levels, which were bloated earlier this year. 3Com told analysts in June that first-quarter revenue would be flat to slightly higher from the previous quarter's level of $1.38 billion. But Sanford C. Bernstein & Co. analyst Paul Sagawa Tuesday said 3Com's revenue will rise somewhere in the mid-single-digit percentage range. Steve