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3Com Reports 4Q Revenue Growth: Page 2 of 3

"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.