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3Com may reorganise

3Com may reorganise

3Com, which had originally scheduled analyst briefings in February, moved the meeting to the week of March 20, allowing the dust to settle on the spin-off of its Palm business on March 2. Now, according to analysts, reorganisation is in the wind for 3Com.

The Californian network vendor, which is scheduled to announce its third-quarter earnings after the market closes today, will also talk about restructuring the company in the wake of the Palm spin-off, according to some industry watchers.

Stan Schatt, an analyst at Giga Information Group in Massachusetts, said 3Com is trying to be all things to all people.

"They're (3Com) trying to be a consumer company, a network company and a service provider company," Schatt said. "Cisco is moving into their territory in a big way in the small and midmarket business. In the service provider space, (3Com has) been recently successful, but there's a lot of competition from other players," he added.

Schatt said 3Com is "going through an identify crisis". Meanwhile, he said the company is concerned about what kind of revenues it will have to generate to keep its stock price at its current levels and where those revenues will come from.

3Com officials declined to comment on the prospect of a possible restructuring.

Although 3Com has high hopes for its wireless business, wireless is still an embryonic market that will require a lot of effort to generate sales, said Schatt. "I think (3Com) is looking at the Cabletron and Lucent examples, and they're trying to come up with a plan that makes sense for the company in the future."

Lucent Technologies recently announced it would spin off its enterprise networking business as a separate company. Meanwhile, Cabletron Systems said last month that it would split up its business into four separate companies.


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