3Com Reports 4Q Revenue Growth

The growth was spurred by stronger sales across several of 3Com's enterprise networking lines, such as wireless, VoIP and security.

June 23, 2004

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3Com Tuesday reported a smaller loss and 5 percent revenue growth for its fourth quarter, its first year-over-year quarterly revenue increase in more than five years.

The growth was spurred by stronger sales across several of 3Com's enterprise networking lines, such as wireless, VoIP and security. In particular, VoIP products were strong performers, with revenue almost doubling sequentially, said Bruce Claflin, president and CEO of 3Com, Marlborough, Mass., in a statement.

Sales of the company's stackable switching products to the SMB market also grew.

"Among the reasons [for revenue growth] were improved product competitiveness and enhanced channel terms, conditions and programs," Claflin said.

At the same time, sales of modular switches and routers sourced from 3Com's joint venture with Huawei Technologies declined approximately 15 percent sequentially."The principal reason sales have not ramped more rapidly is the need to improve the features and capabilities of these products in order to expand our channel partners and compete more effectively in the market," Claflin said, noting that the company has taken steps this quarter to beef up features in the product lines.

For the quarter ended May 28, 3Com reported a loss of $19 million, or 5 cents per share, compared with a loss of $38 million, or 11 cents per share, in the same quarter a year ago.

Revenue for the quarter climbed to $183.3 million, up from $171.8 million in the same quarter last year.

Financial analysts expected the networking company to report quarterly revenue of $173 million, according to First Call/Thomson Financial.

Shares of 3Com Tuesday closed up 40 cents at $6.86 prior to the announcement.0

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