3Com Yields Another Rabbit (COMS)

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By Douglas A. McIntyre Updated Published
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3com_logo_23Com Corporation (NASDAQ: COMS) posted earnings of $0.11 non-GAAP EPS on revenue of $342.6 million.   First Call estimates were $0.06 EPS on $337.12 million in revenue.  While it had already raised guidance in early August, these resuls were above the raised targets.  3Com generated $39.3 million in cash from operations. The company’s cash and cash equivalents as of August 29 were $541.4 million.

Its guidance had been for revenue of $335 million to $340 million ($10 millionhigher than before) with earnings per share of $0.06 to $0.08. 3Com expects to end the quarter with about $530 million in cash.

The company did not offer its guidance ahead of the 5:00 PMEST conference call.  Estimates for next quarterare $0.04 non-GAAP EPS and about $320.7 million in revenue.

Shares closed flat today at at $2.09 and are trading up at $2.17 afterthe close.  Either way, its earnings have zero impact on the maincommunications and routing equipment players such as Cisco, Juniper, and Nortel.

Jon C. Ogg
September 22, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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