3Com Confirms Third Fiscal Quarter Results; Sales of $1.41 Billion Increase 13 Percent Year-Over-Year.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--March 23, 1999--3Com Corporation (Nasdaq: COMS COMS 3Com Corporation (stock symbol) COMS Certified Orientation and Mobility Specialist COMS Continuous Opacity Monitoring Systems COMS City of Manchester Stadium (UK) ) today reported financial results for its third fiscal quarter, ended Feb. 26. Sales for the quarter of $1.411 billion increased 13 percent from sales of $1.250 billion reported in the same quarter a year ago. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income was $89.6 million, or $0.24 per share, compared with pro forma net income of $7.4 million, or $0.02 per share, posted in the year-ago quarter. These results were consistent with the Company's preliminary earnings announcement on March 2. Reported third quarter net income of $89.7 million, or $0.24 per share, included a net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta credit of $7.3 million related to changes in previously recorded merger and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses and a net pre-tax charge of $7.1 million for purchased in-process technology associated with the acquisitions of Smartcode  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. Technologie and certain assets of ICS (1) (Internet Connection Sharing) A Windows feature that enables two or more computers to share one Internet connection. First introduced in Windows 98 Second Edition, sharing is accomplished with network address translation (NAT), which is the common method. Networking, Inc. Reported net income in the same quarter a year ago of $13.9 million, or $0.04 per share, included a net pre-tax credit of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9.9 million related to the merger charge associated with the company's acquisition of U.S. Robotics (U.S. Robotics, Inc., Schaumburg, IL, www.usr.com) A modem manufacturer highly regarded for its quality products. The company manufactures its own chipsets (data pumps) and often leads with innovations. Its HST protocol was a high-speed, reliable protocol before V. , Inc. in June June: see month. 1997. Third quarter sales of systems products increased 28 percent from the same quarter a year ago to $703.9 million and comprised 50 percent of total sales. Client access product sales increased one percent from the year-ago quarter to $706.6 million and comprised 50 percent of total sales. "Balance sheet performance remained strong and improved during the quarter, enabling us to preserve gross margins despite the impact of seasonality and an unexpected slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. demand in the North and Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of enterprise markets," said Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Benhamou, chairman and chief executive officer. During the quarter, the company announced a series of significant alliances, acquisitions and new products that strengthen its ability to deploy converged networking The integration of the telephone system with IP-based data networks. See softswitch. (networking) converged network - A single network that can carry voice, video and data. solutions across four key customer markets-consumer, small-medium enterprise, large enterprise and carrier/ISPs. For a comprehensive review of these announcements and other company news, please refer to the "Q399 Highlights" attachment See attach a file. at http://www.3com.com/pressbox. About 3Com Corporation With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com -- More connected.(TM) For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox. Note to Editors: 3Com is a registered trademark and More connected is a trademark of 3Com Corporation. -0-
3Com Corporation
Condensed Consolidated Statements of Operations
(Unaudited. In thousands, except per share data.)
Three Months Ended Nine Months Ended
Feb. 26, Mar. 1, Feb. 26, Mar. 1,
1999 1998 1999 1998
Sales $ 1,410,529 $ 1,250,191 $ 4,356,577 $ 4,044,896
Cost of sales 743,019 707,188 2,336,297 2,183,961
----------- ----------- ----------- -----------
Gross margin 667,510 543,003 2,020,280 1,860,935
----------- ----------- ----------- -----------
Operating expenses:
Sales and
marketing 324,711 315,174 949,982 955,886
Research and
development 162,114 144,237 468,706 432,013
General and
administrative 69,157 67,775 193,151 201,905
Purchased
in-process
technology 7,115 -- 7,115 --
Merger-related
(credits) charges
and other (7,315) (9,926) (16,895) 258,632
----------- ----------- ----------- -----------
Total operating
expenses 555,782 517,260 1,602,059 1,848,436
----------- ----------- ----------- -----------
Operating income 111,728 25,743 418,221 12,499
Interest and other
income (expense),
net 18,100 (4,423) 40,019 6,175
----------- ----------- ----------- -----------
Income before
income taxes 129,828 21,320 458,240 18,674
Income tax provision 40,247 7,462 142,055 52,028
Equity interest in
loss of consolidated
joint venture (156) -- (156) --
----------- ----------- ----------- -----------
Net income (loss) $ 89,737 $ 13,858 $ 316,341 $ (33,354)
=========== =========== =========== ===========
Net income (loss)
per share:
Basic $ 0.25 $ 0.04 $ 0.88 $ (0.10)
Diluted $ 0.24 $ 0.04 $ 0.86 $ (0.10)
Shares used in
computing per
share amounts:
Basic 361,766 354,766 359,534 349,028
Diluted 374,699 366,116 369,777 349,028
-0- Net income for the quarter ended February February: see month. 26, 1999 included a net pre-tax charge of approximately $7.1 million for purchased in-process technology associated with the purchases of Smartcode Technologie and certain assets of ICS Networking, Inc., and a net pre-tax credit of approximately $7.3 million primarily associated with the merger with U.S. Robotics, Inc. (US Robotics US Robotics - U.S. Robotics, Inc. ). Excluding these charges and credits, net income for the quarter ended February 26, 1999 would have been $89.6 million, or $0.24 per share. Net income for the nine months ended February 26, 1999 included a net pre-tax charge of approximately $7.1 million for purchased in-process technology associated with the purchases of Smartcode Technologie and certain assets of ICS Networking, Inc., and a net pre-tax credit of approximately $16.9 million primarily associated with the merger with U.S. Robotics. Excluding these charges and credits, net income for the nine months ended February 26, 1999 would have been $309.7 million, or $0.84 per share. Net income for the quarter ended March 1, 1998 included a net pre-tax credit of approximately $9.9 million associated with the merger with U.S. Robotics. Excluding this net pre-tax credit, net income for the quarter ended March 1, 1998 would have been $7.4 million, or $0.02 per share. Net income for the nine months ended March 1, 1998 included a net pre-tax charge of approximately $258.6 million associated with the merger with U.S. Robotics. Excluding this charge, net income for the nine months ended March 1, 1998 would have been $180.2 million, or $0.49 per share. -0-
3Com Corporation
Condensed Consolidated Balance Sheets
(In thousands.)
Feb. 26, May 31,
1999 1998
(Unaudited)
ASSETS
Current assets:
Cash and equivalents $ 981,520 $ 528,981
Short-term investments 742,726 547,097
Accounts receivable, net 981,017 849,640
Inventories, net 409,216 644,771
Deferred income taxes 368,738 430,182
Other 99,420 134,001
----------- -----------
Total current assets 3,582,637 3,134,672
Property and equipment, net 837,316 858,779
Deposits and other assets 144,412 87,069
----------- -----------
Total assets $ 4,564,365 $ 4,080,520
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 366,009 $ 332,992
Accrued liabilities and other 670,462 673,311
Income taxes payable 171,645 177,612
----------- -----------
Total current liabilities 1,208,116 1,183,915
Long-term debt 30,442 35,878
Deferred income taxes and other
long-term obligations 59,515 53,232
Equity interest in consolidated
joint venture 5,093 --
Stockholders' equity:
Common stock 1,934,004 1,730,676
Retained earnings 1,334,322 1,079,775
Unrealized (loss) gain on
investments, net (946) 827
Unamortized restricted stock grants (5,185) (4,157)
Accumulated translation adjustments (996) 374
----------- -----------
Total stockholders' equity 3,261,199 2,807,495
----------- -----------
Total liabilities and stockholders'
equity $ 4,564,365 $ 4,080,520
=========== ===========
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