Communications network Equipment maker 3Com has reported that its fourth quarter net loss has narrowed to USD 15.2 million, or 4 cents a share, from net loss of USD 58.3 million, or 15 cents a share. The net loss included 3 cents a share for restructuring and amortization charges.
Revenue for the quarter rose to USD 255 million from USD 176.7 million a year earlier, helped by two months of revenue from 3Com's joint venture with Huawei-3Com.
Wall Street analysts on average had expected the company to post a loss of 5 cents a share, excluding items, on revenue of USD 275 million.
The company has also outlined a multi-faceted restructuring plan. The plan focuses on reducing components of the SCN operating segment cost structure in order to achieve future profitability. The plan includes the closure of about 21 facilities around the world; a reduction in workforce of about 250 full-time employees, equaling about 15 percent of its SCN headcount; and focusing its sales, marketing and services efforts.
As a result of this realignment, 3Com currently estimates it will record restructuring charges of about USD 10 to USD 13 million. These charges are expected to be recorded principally during 3Com's first and second quarters of fiscal 2007.
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