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3Com Reports Results for First Quarter Fiscal Year 2010

3Com Corporation (Nasdaq: COMS) reporting its financial results for its fiscal 2010 first quarter, which ended August 28, 2009. Revenue in the quarter was $290.5 million, compared to revenue of $342.7 million in the corresponding period in fiscal 2009. This beat Wall Street estimates, and 3Com’s stock listed on NASDAQ rose overnight by 5.86 percent when the broader index fell 1.12 percent. “We are pleased with 3Com’s start to our new fiscal year,” said Bob Mao, 3Com’s Chief Executive Officer. “We had a very good quarter, delivering solid revenue performance, improving gross margin over the prior year, and continuing to generate cash from operations.”
  • 28 September, 2009 09:39

<p>3Com Corporation (Nasdaq: COMS) today reported financial results for its fiscal 2010 first quarter, which ended August 28, 2009. Revenue in the quarter was $290.5 million, compared to revenue of $342.7 million in the corresponding period in fiscal 2009, a 15.2 percent decrease.</p>
<p>Net income in the quarter was $7.5 million, or $0.02 per diluted share, compared with net income of $79.8 million, or $0.20 per diluted share, in the first quarter of fiscal year 2009. Fiscal year 2009 first quarter results included a $70.0 million favorable patent dispute resolution, representing a benefit of $0.17 per diluted share. On a non-GAAP basis, net income for the first quarter of fiscal year 2010 was $30.6 million, or $0.08 per diluted share, compared with net income of $43.4 million, or $0.11 per diluted share, for the first quarter of fiscal year 2009.</p>
<p>3Com generated $16.9 million in cash from operations in the quarter. 3Com’s cash and equivalents and short term investments balance at August 28, 2009 was $665.8 million.</p>
<p>“We are pleased with 3Com’s start to our new fiscal year,” said Bob Mao, 3Com’s Chief Executive Officer. “We had a very good quarter, delivering solid revenue performance, improving gross margin over the prior year, and continuing to generate cash from operations.”</p>
<p>Management hosted a conference call and Webcast at 8:30 a.m. EDT, Thursday, September 24, 2009, to discuss the company’s financial results and business outlook. For the next three weeks, a replay is available by dialing (719) 457-0820 or (888) 203-1112, Confirmation Code: 4218350. A replay will also be available over the Internet at 3Com's Investor Relations Web site (www.3com.com/investor) in the Earnings Webcast section.</p>
<p>Additional financial information is available on the Investor Relations section of our Web site.</p>
<p>Safe Harbor
This news release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our business objectives and goals. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation, risks relating to: our ability to grow profitably, expand outside of China, maintain and expand in China, improve expense controls while making investments to grow and other risks detailed in the Company’s filings with the SEC, including those discussed in the Company’s annual report filed with the SEC on Form 10-K for the fiscal year ended May 29, 2009.</p>
<p>3Com Corporation does not intend, and disclaims any obligation, to update any forward-looking information contained in this release or with respect to the announcements described herein.</p>
<p>The non-GAAP measures used by the Company exclude restructuring, amortization, stock-based compensation expense and, if applicable in the relevant period, unusual items, such as those items detailed in the tables attached to this press release. The required reconciliations and other disclosures for all non-GAAP measures used by the Company are set forth later in this press release, in the Current Report on Form 8-K furnished to the SEC on the date hereof and/or in the investor relations section of our Web site, www.3com.com.</p>
<p>References to the financial information included in this news release reflect rounded numbers and should be considered approximate values.</p>
<p>About 3Com Corporation
3Com Corporation is a $1.3 billion global enterprise networking solutions provider that sets a new price/performance standard for customers. 3Com has three global brands—H3C, 3Com, and TippingPoint—that offer high-performance networking and security solutions to enterprises large and small. The H3C enterprise networking portfolio—a market leader in China—includes products that span from the data center to the edge of the network, while TippingPoint network-based intrusion prevention systems and network access control solutions deliver in-depth, no-compromise application, infrastructure and performance protection.
Copyright© 2009 3Com Corporation. 3Com, the 3Com logo, H3C and TippingPoint are registered trademarks of 3Com Corporation or its wholly owned subsidiaries in various countries around the world. All other company and product names may be trademarks of their respective holders.</p>

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