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3Com beats forecast
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June 24, 1998: 6:22 p.m. ET
Networking firm earns 18 cents per share, excluding one-time items
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NEW YORK (CNNfn) - Computer networking company 3Com Corp. beat Wall Street expectations for the fourth quarter, but its 1998 earnings were weighed down by charges related to its acquisition of U.S. Robotics Corp.
Santa Clara, Calif.-based 3Com earned $63.5 million, or 17 cents a diluted share, compared to a profit of $41.7 million, or 12 cents a diluted share a year ago.
The better-than-expected results drove 3Com shares higher in after-hours trading. 3Com (COMS) shares climbed to 29-1/2 in after the bell, up from their close of 27-1/8.
Those results include an $8.4 million charge to cover the acquisition of computer networking company Lanworks Technologies and $4.9 million received from the sale of real estate.
Excluding the one-time items, 3Com earned $65.9 million, or 18 cents a share. That beat Wall Street expectations by a penny.
3Com's fourth-quarter revenue grew to $1.375 billion over $1.371 billion in 1997.
For the year, 3Com earned $30.2 million, or 8 cents a diluted share, compared to $500.5 million, or $1.42 a share, a year ago.
3Com's 1998 results were weighed down by acquisition-related charges of $262.1 million, or 59 cents a share. All but 2 cents of the charge was for 3Com's $6.6 billion acquisition of modem maker U.S. Robotics Inc., which was announced early last year.
3Com's 1998 revenue was $5.4 billion compared to $5.6 billion a year ago.
3Com Chairman and Chief Executive Officer Eric Benhamou said with the U.S. Robotics acquisition completed, he expects better results in 1999.
"Our fourth-quarter results reflect the success of our new product platforms and our commitment to continually strengthening operational performance.
"We have entered fiscal 1999 with confidence and a solid foundation for future growth and continued success," he said.
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3Com
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