Early Bird Special (EBS)

[trading4art]

COMS-3Com warns of revenue shortfall

Tuesday , December 07, 2004 09:31 ET

Dec 07, 2004 (Datamonitor via COMTEX) --Networking equipment vendor 3Com Corp has issued a profit warning for the second quarter in succession. The Marlborough, Massachusetts-based company now expects revenue for its second quarter to November 26 to be in the range of $149 million to $153 million, way below the range of $170 million to $180 million it predicted in September.

Gross margins are expected to be 35%, compared with its forecast of 38%, and 3Com believes it will record a net loss per share of $0.12 to $0.14, down on the $0.37 recorded in the previous quarter.

3Com has been shrinking for the past three years, and its predicted level of second-quarter revenue will be more than 20% below that recorded a year earlier. In September, it warned that first-quarter revenue would be in the range of $160 million to $164 million, compared to original expectations of flat to slightly up on the previous quarter's $183 million.

Its stock fell 8.1% to $4.20 on the latest news giving the company a stock market value of $1.59 billion.

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