3Com Warns of 1Q Revenue Shortfall

The company previously projected revenue for the quarter ended Aug. 27 would be flat to slightly higher than its fourth-quarter revenue of $183 million. Analysts surveyed by Thomson First Call predicted a loss of 6 cents per share on revenue of $183 million, compared with last year's loss of 15 cents on revenue of $162 million.

Gross margins are expected in the range of 38 percent to 39 percent, down from prior estimates of 40 percent, 3Com said. Sales and marketing, research and development and general and administrative expenses, however, are expected at the low end of the forecasted mid-$90 million range.

Shares of 3Com were halted in early trade but closed at $4.69 on the Nasdaq Thursday.

Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

Sponsored post