Approximately 60 days into his tenure as CEO of 3Com, Scott Murray Thursday pledged to make changes in the near-term that will help put the networking vendor on the path to profitability.
“I recognize that the most fundamental issue is that 3Com is not profitable today,” Murray said during a conference call to discuss the Marlborough, Mass.-based company’s fiscal third quarter financial results. “Over the next few months we will be building a thorough plan to address our business model and performance. This is our top priority.”
In the next several months, Murray said he will “complete my homework on our business and launch a comprehensive plan to return us to sustainable profitability.”
Murray said the company will be making “tough decisions” and that changes would be seen in the near term.
He provided few details on what changes he plans making but indicated that he would first be looking internally at areas such as infrastructure, IT, supply chain, support services and go-to-market resources.
Murray joined 3Com on January 27, replacing Bruce Claflin, who had previously announced plans to retire.
For the quarter ended March 3, 3Com reported an earnings loss of $32.8 million, or 8 cents per share, compared to a loss of $53 million, or 14 cents per share, the same quarter a year ago.
Revenue for the quarter hit $177.6 million, up from $161.2 million the same quarter a year ago.
Financial analysts expected the company to report a loss of 7 cents on revenue of $192 million.
During the quarter, 3Com acquired an additional two-percent stake in Huawei-3Com, giving it a controlling interest in the China-based joint venture. Starting next quarter, 3Com’s financials will include consolidated results from the joint venture.
On a pro forma basis, had results been consolidated during the third quarter, the company would have reported a loss of $33 million and revenue of $305 million, compared to a loss of $55 million and revenue of $242 million in the year-ago quarter.
3Com did not provide future guidance.
Shares of 3Com closed up 11 cents at $5.11 Thursday prior to the announcement.
