3Com loses $206 Million
  06/25/2001 5:25:25 PM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

Shortly after Nortel announces a $19.2 Billion loss, 3Com's $206 Million doesn't look that bad.   Networking equipment maker 3Com reported poor results Tuesday for its fourth fiscal quarter, with officials saying the company has been hit by the most far-reaching slowdown ever faced by the technology sector.

  The vendor reported $468 million in revenue for the quarter ending June 1, down from $763.7 million in the same period last year. 3Com, in Santa Clara, Calif., posted a net loss for the quarter of $206 million, or 61 cents per share.

  "Demand for our products, as with the rest of the industry, has dramatically declined," Bruce Claflin, 3Com president and CEO, said in a statement. "But the impact has been even greater for us than many others, because segments where we have traditionally been strong were the hardest hit in the downturn."

  "Our industry and company are undergoing fundamental changes," Claflin said. "They are traumatic, painful, and necessary. But both our industry and company will be better off for having done it."

  The results above include charges associated with inventory issues, restructuring costs, and other items, including those items 3Com lost $518 million in the quarter, or $1.52 per share.

  The company is looking to reduce manufacturing costs, concentrate on developing products for higher growth areas, and reach profitability by its fourth fiscal quarter, Claflin said. The company has cut its workforce by close to 40 percent since last November.

  Related AMO Articles:
   Nortel forecast $19.2 Billion loss
   Nortel to slash 10,000 jobs.