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3Com Reports Wider 3Q Loss

3Com Thursday reported a wider year-over-year loss and a 21 percent revenue decline for its third fiscal quarter, missing financial analysts' sales expectations.

For the quarter ended Feb. 27, the Marlborough, Mass.-based networking vendor reported a loss of $85.6 million, or 22 cents per share, compared with a loss of $79.2 million, or 22 cents per share, the same quarter a year ago. The quarter included approximately $40 million in restructuring charges.

Revenue for the quarter dropped to $171.8 million, down from $216.5 million in the same quarter last year. Financial analysts expected the company to report revenue of $176 million, according to Thomson Financial/First Call.

Despite the disappointing numbers, 3Com President and CEO Bruce Claflin said he is seeing improvements in the economic picture for the industry.

"The good news is budgets are stable, CIOs are able to predict with some accuracy what their spend levels will be, and they are getting a little more adventurous in terms of looking for more strategic projects," Claflin said during a conference call. "Having said that, I would characterize it as growing modestly," he said, noting that he expected a more robust recovery by this point.

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