Network equipment vendor 3Com this morning reported an 81pc increase in second-quarter revenues to US$333m. During the quarter 3Com agreed to acquire Huawei Technologies’ 49pc stake in H3C for US$882m.
Loss per share was US$0.01 in the second quarter, as compared to a US$0.03 loss per share a year ago.
3Com’s gross profit for the second quarter of fiscal year 2007 was US$150m, or 45pc of revenue, which is a five percentage point improvement compared to the prior-year quarter, driven primarily by the inclusion of H3C results in the current period results.
Second-quarter fiscal 2007 operating expenses were US$160m, which includes a US$27m reduction in expenses for the SCN (secure converged networking) segment compared to the same period last year. This resulted in an operating loss of US$9m, compared to a US$42m operating loss in the second quarter of fiscal year 2006.
“In our second fiscal quarter, we continued to show excellent progress in both the H3C and SCN operating segments of our business, delivering on one of our key milestones: non-GAAP (generally accepted accounting principles) operating profitability,” said Edgar Masri, 3Com’s president and chief executive.
“Companies that will be successful on a global scale must find new and innovative ways to tap into fast growing economies such as the one in China and other emerging markets.
“Through H3C and our improving SCN segment, we believe we have the building blocks necessary to create a global technology leader. We must now focus on successfully integrating the best-in-class approaches from both H3C and 3Com to build on this positive momentum and create a sustainable, growing and profitable business,” Masri said.
By John Kennedy