Networking equipment vendor 3Com reported a pro forma net loss of $US41.4 million, or 12 cents a share, for its first fiscal quarter, way ahead of the expectations of financial analysts.
A survey of 10 brokers conducted by market watchdog First Call/Thomson Financial produced a consensus estimate of a 34 cent per-share loss for the quarter, which ended September 1.
3Com said the results reflect the effect of a restructuring plan announced during its fourth fiscal quarter ended June 2, when the California-based company said it would exit certain product lines and tighten its focus on high-growth markets and products.
Total sales for the first quarter were $933.8 million, which included $127.5 million from the exited analog modem and Lan/Wan (local area network/wide area network) high-end chassis businesses. Excluding these revenues, 3Com's ongoing businesses accounted for $806.3 million in sales, a 20 per cent increase from comparable sales in the fourth quarter of fiscal 2000, 3Com said.
The close of the first quarter marks the completion of 3Com's restructuring efforts, and the company is favourably positioned to create value for its shareholders, said Eric Benhamou, 3Com's chairman and chief executive officer.