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3Com reports fiscal Q2 results

  • 18 December, 2003 09:34

<p>3COM REPORTS FISCAL Q2 RESULTS
Company Reports Revenue of $US182 Million, an Increase of 12 Per Cent Sequentially</p>
<p>MARLBOROUGH, Mass., December 17, 2003 – 3Com Corporation (Nasdaq: COMS) today reported financial results for its second quarter of fiscal year 2004 ended November 28, 2003.</p>
<p>Revenues for the quarter were $US182 million. Gross margins were $US57 million, or 31 percent of revenues. Operating expenses were $US172 million, including $US59 million of restructuring charges. The net loss was approximately $US139 million, or $US0.37 per share.</p>
<p>These results have been presented on a U.S. GAAP (Generally Accepted Accounting Principles) basis and are not comparable to First Call EPS estimates.</p>
<p>The company ended the quarter with $US1.4 billion in cash and short-term investments.</p>
<p>Safe Harbor
This press release and Mr. Claflin’s and Mr. Slaven’s remarks on the quarterly results contain forward-looking statements within the meaning of the federal securities laws, including statements regarding the following: the expected decline in the sale of our desktop, mobile and server connectivity products during our third fiscal quarter; the expected modest increase in sales across the balance of our product portfolios during our third fiscal quarter; slight disruptions in sales volumes and lower average selling prices during our third fiscal quarter; total revenues for our third fiscal quarter; our expectations relating to becoming cash flow breakeven by our fourth fiscal quarter; the cash and short term investment position for the remainder of the fiscal year; the realization of expected savings from actions announced during our second fiscal quarter; gross margins over the remainder of our fiscal year; weeks of channel inventory over the remainder of the fiscal year; the expectation that the JV (as defined below) will provide key benefits to 3Com; the expansion of our channels; the expansion of our product lines in traditional and newer product categories; our joint development and selling efforts with CrossBeam and the expansion of this relationship to other product and technology partnerships over the rest of the fiscal year; the reduction in employees in the second half of the fiscal year; our intentions with respect to our growth relative to the industry; and our strong financial returns and an increase in shareholder value. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially, including the following: possible fluctuations in the demand for our products and in economic conditions affecting the markets for our products; our ability to successfully manage costs and expenses; possible delays or inability to collect accounts receivable; continued or increased reductions in capital spending in the technology and networking sectors; technological changes and trends in the networking sector; possible development or marketing delays relating to our product offerings or the product offerings of the joint venture with Huawei Technologies; our ability to plan and forecast channel and company inventory; possible defects in our product offerings or the product offerings of the joint venture with Huawei Technologies; the introduction of new products by competitors or entry of new competitors into the markets for our products or the markets for the products of the joint venture with Huawei Technologies; expected volatility in our stock price; and the possibility of legal disputes. A detailed discussion of other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in 3Com’s most recent filings with the Securities and Exchange Commission, including 3Com’s Annual Report on Form 10-K for the fiscal year ended May 30, 2003 and Quarterly Report on Form 10-Q for the period ended August 29, 2003. 3Com undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.</p>
<p>About 3Com Corporation
3Com is a leading provider of innovative, practical and high-value voice and data networking products, services and solutions for enterprises of all sizes and public sector organisations. For further information, please visit www.3com.com, or the press site www.3com.com/pressbox.</p>
<p>Note to media - for further financial information, please contact:
Gerard Mansour
Red Agency
(+61) 02 9955 7877
gerard.mansour@redagency.com.au</p>

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