3Com Profit Beats Wall Street Expectations

Paul Lilly

3Com on Wednesday reported financial results for its fiscal 2010 second quarter ending November 27, 2009, and the results came as a bit of a surprise to Wall Street analysts. The company reported $322.2 million in second quarter revenue, compared to revenue of $354.6 million in the same quarter one year ago.

While that represents a drop of 9.1 percent, revenue increased sequentially to the tune of 10.9 percent, from $290.5 million. According to 3Com, revenue grew sequentially across all major sales regions, a feat the company attributes to a "solid recovery" in several international regions.

"We are pleased with 3Com's performance in the quarter," said Bab Mao, 3Com's Chief Executive Officer. "We exceeded our guidance for revenue, operating profit, earnings per share, and our cash balance, while delivering sequential revenue growth across all our sales regions and achieving record gross and operating margins."

3Com's net income in the quarter was $20.0 million, or $0.05 per diluted share, compared with net income of $12.9 million, or $0.03 per diluted share, in the same quarter one year ago.

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