3Com Lowers Third Quarter Revenue Guidance; Reaffirms Guidance for Gross Margins, Ongoing Operating Expenses, and Cash and Equivalents.Business Editors/High-Tech Writers 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 7, 2003 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 updated the revenue guidance for its fiscal third quarter ended February 28, 2003, which was provided on December 19, 2002 during the company's second fiscal quarter earnings call. 3Com anticipates third quarter revenues will be in the range of $240 million to $245 million. Enterprise Networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. sales are expected to be approximately 13 to 14 percent below the prior quarter due largely to weakness in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. Connectivity sales are anticipated to decline sequentially by slightly more than the previous guidance of 20 percent, after setting aside the $15 million in royalties received in the previous quarter. CommWorks sales are expected to be down approximately 7 percent compared to the company's guidance for roughly flat sales sequentially. Gross margins are expected to be within the 45 to 47 percent range provided in previous guidance. On a sequential basis, ongoing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , exclusive of any restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , are expected to decline modestly as previously targeted. Cash and equivalents balances at the end of the third fiscal quarter are expected to remain above $1.4 billion, in line with previous guidance. More information on the company's fiscal third quarter performance will be communicated on 3Com's regularly scheduled quarterly earnings call. 3Com will announce results for its fiscal third quarter ended February 28, 2003 on the afternoon of Wednesday, March 19, 2003 after the market closes. As is customary following the release, management will hold a conference call to discuss the results. The conference call will begin at 2:00 PM (Pacific)/5:00 PM (Eastern). To participate on the call, U.S. and international parties may dial 913/981-5523. Alternatively, interested parties may listen to the live broadcast of the call over the Internet at 3Com's Investor Relations Investor relations The process by which the corporation communicates with its investors. website (www.3com.com/IR) in the Earnings Webcast section. For those unable to participate on the live call, a 24-hour replay will be available immediately after the call at 719/457-0820, ID 601514. A replay will also be available over the Internet at 3Com's Investor Relations website (www.3com.com/IR) in the Earnings Webcast section. About 3Com Corporation 3Com is a tier-one provider of innovative, practical and high-value networking products for enterprises of all sizes and public sector organizations. 3Com is also a leader in providing Internet protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) service platforms and access infrastructure for network service providers. For further information, please visit www.3com.com, or the press site at www.3com.com/pressbox. |
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