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News > Technology
3Com warns on 3Q
February 28, 2001: 7:37 p.m. ET

Latest tech warning says slowdown in telecom sector hurt sales, raises loss
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NEW YORK (CNNfn) - Computer networking provider 3Com warned it is looking at a much larger-than-expected loss in the quarter that ends Friday, on weaker-than-expected sales.

graphicThe company said it is looking at a net loss excluding special items of between $135 million and $145 million in its fiscal third quarter. The company did not give a loss per share estimate, but given its shares outstanding that would work out to a loss of about 40 cents-to-43 cents a share. Analysts surveyed by earnings tracker First Call were looking for a loss in the 14 cents-a-share range, after a profit of 21 cents a share in the same quarter a year earlier.

The company said its revenue should now come in the $625 million-to-$640 million range. The company blamed U.S. economic conditions and the continuing impact of the slowdown in the telecom sector, which have led to reduced demand for products across most of the company's business segments.

The announcement is not the first piece of bad news for the company. It also had to warn on second-quarter results.

Click here for a look at networking stocks

Wednesday's announcement comes on the heels of a Monday announcement that it will cut 1,200 jobs to help deal with a downturn in the U.S. economy and "turmoil" in the telecommunications industry. It also said it might cut more jobs and is still working on ways to cut other costs, including "discretionary" and property costs.

Shares of 3Com (COMS: Research, Estimates) lost $1.22 to $7.91 in after-hours trading, after gaining 13 cents to close regular-hours trading at $9.13 before the warning. graphic




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