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

To: Scrapps who wrote (28603)	3/3/1999 10:28:00 AM
From: W.F.Rakecky	Read Replies (1) \| Respond to of 45548

Scrapps.....Has anybody heard from "Joe"???? Is his departure and COMS dive purely co-incidental??

To: Scrapps who wrote (28603)	3/3/1999 6:46:00 PM
From: Moonray	Respond to of 45548

3Com Shares Fall on Weak 3rd-Quarter Profit Outlook Bloomberg - March 3, 1999 4:30 PM ET Santa Clara, California, March 3 (Bloomberg) -- 3Com Corp. shares fell 9 percent after the No. 2 U.S. networking company said its fiscal third-quarter profit will miss analyst estimates because of slowing sales. 3Com fell 2 7/16 to 24 9/16 in trading of 61.1 million, making it the most active stock in U.S. markets. The shares slid 12 percent yesterday and have plunged by more than half since December. The company sold fewer low-cost modems and connector cards used to link PCs to corporate networks and the Internet, even though it cut prices during the quarter. Those products contribute about half of 3Com's revenue, and analysts expect prices to fall further this year. ''It's a really tough market right now,'' said analyst David Takata of Gruntal & Co., who rates 3Com a ''buy.'' ''This quarter was especially tough -- next quarter should be up.'' Personal-computer makers including No. 1 Compaq Computer Corp. and Micron Electronics Inc. have been warning that sales are slowing, especially among corporate buyers. Ratings Cut At least eight analysts cut their investment ratings on Santa Clara, California-based 3Com today. Some also cut their earnings estimates. Analysts and investors also speculate that 3Com is losing business to Cisco Systems Inc. in the market for more expensive networking systems. 3Com said late yesterday that it expects net income of 23 cents a share and revenue of $1.41 billion to $1.415 billion for the quarter ended on Friday. It had been expected to earn 36 cents, the average estimate of analysts from First Call Corp. The company had profit before a gain of $7.41 million, or 2 cents, on revenue of $1.25 billion a year earlier. ''Half their revenue comes from lousy, slow-growth businesses,'' said William Becklean, an analyst at Tucker Anthony Inc., who rates 3Com ''outperform.'' 3Com usually sees strong sales of its so-called client access products, such as the PalmPilot hand-held computer and analog modems, in November and December. Sales of those consumer products traditionally slow in January and February. Still, the revenue shortfall goes ''beyond a seasonality issue,'' 3Com Chief Executive Eric Benhamou told analysts on a conference call. ''We saw a fundamental slowdown in our (corporate) enterprise business.'' Client Access 3Com saw more of a decline in its client-access business than in the expensive systems it sells to large businesses, Benhamou said, without providing details. The company is planning to boost research and development spending by an unspecified amount on so-called broadband-access products, such as cable modems, while shifting its focus from R&D of analog modems, Benhamou said. Chief Financial Officer Christopher Paisley called it ''optimistic'' to predict that 3Com's sales for the fiscal year ending in May will rise 10 percent from last year's sales of $5.42 billion. 3Com also said it will take a charge of 2 cents to 3 cents a share in its fiscal fourth quarter for its acquisition of NBX Corp. It will take an additional charge for in-process technology acquired from NBX, which 3Com last month agreed to buy for $90 million. o~~~ O

To: Scrapps who wrote (28603)	3/5/1999 9:16:00 AM
From: Moonray	Respond to of 45548

Siemens to buy U.S. networks units, not 3Com - FT Reuters - 07:41 a.m. Mar 05, 1999 Eastern FRANKFURT, March 5 (Reuters) - Germany's Siemens AG has earmarked more than $1 billion as part of a plan to create its own U.S. data networking unit and buy several U.S. data networking companies, the Financial Times reported on Friday. Siemens on Thursday declined comment on any plans it had to move into the data networking sector but said it would be making an announcement in New York on Monday. The FT cited a source close to Siemens as denying the industrial group was in talks with U.S.-based 3Com about buying its unit that sells networking equipment to telephone companies for $1.2 billion. But the same source said Siemens would announce the acquisition of private Massachusetts-based data networking firm Argon Networks for $240 million and a $30 million stake in California-based Accelerated Networks Inc. The FT also reported that Siemens was in talks to acquire another U.S. firm, Castle Networks Inc, for about $300 million and negotiations were likely to be finalised within a few days. The speculation surfaced on Thursday in a New York Times article and was welcomed by the market which pulled Siemens's shares almost seven percent higher at one stage. ((Melanie Cheary, Frankfurt Newsroom +49 69 756525, frankfurt.newsroom+reuters.com)) Copyright 1999 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. o~~~ O