3Com ends its losing sequence
Networking firm posts first growth for 20 quarters
Networking giant 3Com has posted its first sequential growth in 20 quarters.
The vendor revealed a net quarterly loss of $19m on turnover of $183m for its fourth quarter ended 28 May, compared with a $38m loss in Q4 2003.
Bruce Claflin, chief executive of 3Com, said the firm's connectivity business - which manufactures network interface cards - was down 42 per cent year on year. But enterprise networking products had enjoyed "gratifying growth", he added.
The firm left the enterprise networking market in 2000, returning a couple of years later.
"Our enterprise business has traditionally been built around stackable switching products sold primarily through volume channels to SMEs," Claflin said. "Within the industry, we believe this product category is flat to modestly declining. However, we grew these revenues in Q4."
Keith Humphreys, managing consultant at EuroLAN Research, noted European turnover was not so bright. "Sales in the US were up by nearly nine points to 42 per cent of total sales, while EMEA slid by six points," he said.