3Com Reports First Quarter Results Sales Increase 20% Sequentially All Strategic Transformation Milestones On or Ahead of Schedule SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 26, 2000--3Com Corporation (Nasdaq:COMS - news) today reported financial results for its first fiscal quarter ended September 1, 2000. The company`s results reflect the impact of the bold actions announced and taken in its fiscal fourth quarter ending June 2, 2000 to complete its strategic transformation, exit certain product lines and sharpen its focus on high growth markets, technologies and products. For the quarter, total sales were $933.8 million which included $127.5 million from the exited analog modem and LAN/WAN high-end chassis businesses. Excluding these revenues, 3Com`s ongoing businesses accounted for $806.3 million in sales, which was 20% over comparable sales in the fourth quarter of fiscal 2000. Pro forma net loss, which excludes purchased in-process technology charges, business realignment costs, gains on investments, amortization of goodwill and intangibles, merger-related credits and net income from discontinued operations, was $41.3 million or $0.12 per share for the quarter. This was better than the company`s prior projected pro forma net loss of $67.5 to $90.0 million or $0.19 to $0.25 per share, and better than the reported pro forma net loss of $163.8 million or $0.47 per share in the fourth quarter of fiscal 2000. First quarter pro forma operating loss, which excludes amortization of goodwill and intangibles of $7.5 million, a $29.4 million charge for purchased in-process technology related to the Kerbango acquisition, a merger related credit of $0.2 million and a $9.9 million charge related to business realignment, was $99.0 million. This compares to the company`s prior projected pro forma operating loss of $130 to $160 million, and the $256.9 million pro forma operating loss recorded in the fourth quarter of fiscal 2000. Net loss from continuing operations was $63.7 million or $0.18 per share, compared to a net loss of $159.4 million or $0.45 per share in the fourth quarter of fiscal 2000. ``The close of our first quarter marks the completion of our restructuring,`` said Eric Benhamou, chairman and CEO. ``3Com is now a new company with a revitalized image and a heightened focus on growth markets. We now have one quarter of experience for the new 3Com and I`m encouraged by the results. The transformation milestones and business objectives set forth in March 2000 and reaffirmed last quarter were completed on or ahead of schedule,`` continued Benhamou. ``We are growing and favorably positioned to create shareholder value.`` Excluding sales from the exited businesses, first quarter sales for the Commercial and Consumer Networks Business (CCB) were $639.1 million, representing a 24% sequential increase over the fourth quarter of fiscal 2000. Sales for CCB were strengthened by a recovery of the LAN/WAN infrastructure business from the customer and product disruptions resulting from the exit of 3Com`s high-end chassis products announced in March of this year, combined with the stabilization of the company`s access products business, and strong growth in its broadband product offerings. First quarter sales for the Carrier Networking Business (CNB) were $167.2 million, representing an increase of 7% compared with sales of $156.7 million in the fourth quarter of fiscal 2000, and increasing 29% compared with sales of $129.6 million in the first quarter a year ago. Sales for CNB were strengthened by a shift in product mix toward high growth emerging businesses, including wireless CDMA solutions and Voice-over-Internet Protocol (VoIP) solutions for the service provider. In the first quarter, these new businesses accounted for 36% of CNB product revenues, versus 16% in the fourth quarter of fiscal 2000. Last quarter, 3Com outlined several transformation milestones targeted for completion in the first and second quarter of fiscal 2001 that mark the company`s progress in restructuring the business. These milestones included the exit of three businesses, the completion of headcount reductions and the achievement of a new channel inventory model, each of which the company is pleased to report were completed on schedule in the first fiscal quarter. In addition, 3Com completed a fourth milestone, which was the achievement of sequential growth in sales of the ongoing business. This milestone, originally targeted for the second quarter fiscal 2001, was achieved in the first quarter, ahead of schedule. On July 28, 2000, the company completed the distribution of 100% of its holdings in Palm, Inc. to 3Com shareholders of record. Palm`s net results for the two months of the quarter leading up to the distribution are reported on a single line item in 3Com`s first quarter statement of operations and balance sheet as a discontinued operation. All past 3Com financial results have been restated to reflect Palm`s results as discontinued operations. About 3Com Corporation 3Com simplifies how people connect to information and services through easy-to-use, connectivity products and solutions for consumers and commercial organizations. The company also provides access infrastructures and IP services platforms for network service providers. For further information, visit at www.3com.com or the press site at www.3com.com/pressbox. 3Com Corporation Pro Forma Condensed Consolidated Statements of Operations (Excludes amortization of goodwill and acquired intangibles, purchased in-process technology, net merger-related credits, business realignment costs, net gains on investments and income from discontinued operations) (In thousands, except per share data) (Unaudited) Three Months Ended ------------------------------------ September 1, June 2, August 27, 2000 2000 1999 ------------------------------------ Sales $ 933,764 $ 763,684 $ 1,213,196 Cost of sales 593,036 566,880 638,100 ---------- ---------- ----------- Gross margin 340,728 196,804 575,096 ---------- ---------- ----------- Operating expenses: Sales and marketing 236,315 244,888 232,414 Research and development 145,828 155,368 148,359 General and administrative 57,543 53,454 53,993 ---------- ---------- ----------- Total operating expenses 439,686 453,710 434,766 ---------- ---------- ----------- Operating income (loss) (98,958) (256,906) 140,330 Interest and other income, net 45,630 41,533 15,977 ---------- ---------- ----------- Income (loss) before income taxes and equity interests (53,328) (215,373) 156,307 Income tax provision (benefit) (13,332) (53,692) 43,610 Other interests in loss of consolidated joint venture - - (975) Equity interest in loss of unconsolidated investee 1,352 2,073 - ---------- ---------- ----------- Pro forma net income (loss) $ (41,348) $ (163,754) $ 113,672 ========== ========== =========== Pro forma net income (loss) per share: Basic $ (0.12) $ (0.47) $ 0.32 ========== ========== =========== Diluted $ (0.12) $ (0.47) $ 0.32 ========== ========== =========== Shares used in computing per share amounts: Basic 353,777 351,419 353,243 Diluted 353,777 351,419 357,703 PRO FORMA ONLY 3Com Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended ------------------------------------- September 1, June 2, August 27, 2000 2000 1999 ------------------------------------- Sales $ 933,764 $ 763,684 $1,213,196 Cost of sales 593,036 566,880 638,100 ---------- ---------- ---------- Gross margin 340,728 196,804 575,096 ---------- ---------- ---------- Operating expenses: Sales and marketing 236,315 244,888 232,414 Research and development 145,828 155,368 148,359 General and administrative 57,543 53,454 53,993 Amortization of goodwill and acquired intangibles 7,493 8,602 4,974 Purchased in-process technology 29,406 10,560 - Merger-related credits, net (212) (192) (2,105) Business realignment costs 9,901 64,171 - ---------- ---------- ---------- Total operating expenses 486,274 536,851 437,635 ---------- ---------- ---------- Operating income (loss) (145,546) (340,047) 137,461 Gains on investments, net 16,736 89,000 23,551 Interest and other income, net 45,630 41,533 15,977 ---------- ---------- ---------- Income (loss) from continuing operations before income taxes and equity interests (83,180) (209,514) 176,989 Income tax provision (benefit) (20,795) (52,228) 49,660 Other interests in loss of consolidated joint venture - - (975) Equity interest in loss of unconsolidated investee 1,352 2,073 - ---------- ---------- ---------- Net income (loss) from continuing operations (63,737) (159,359) 128,304 Net income from discontinued operations 4,537 12,532 9,187 ---------- ---------- ---------- Net income (loss) $ (59,200) $ (146,827) $ 137,491 ========== ========== ========== Net income (loss) per share: Basic: Continuing operations $ (0.18) $ (0.45) $ 0.36 Discontinued operations $ 0.01 $ 0.03 $ 0.03 ---------- ---------- ---------- $ (0.17) $ (0.42) $ 0.39 ========== ========== ========== Diluted: Continuing operations $ (0.18) $ (0.45) $ 0.36 Discontinued operations $ 0.01 $ 0.03 $ 0.02 ---------- ---------- ---------- $ (0.17) $ (0.42) $ 0.38 ========== ========== ========== Shares used in computing per share amounts: Basic 353,777 351,419 353,243 Diluted 353,777 351,419 357,703 3Com Corporation Condensed Consolidated Balance Sheets (In thousands) September 1, June 2, 2000 2000 ------------ ----------- (Unaudited) ASSETS Current assets: Cash and short-term investments $ 2,701,708 $ 3,069,940 Accounts receivable, net 467,214 355,540 Inventories, net 273,246 285,942 Investments and other 857,984 655,772 Net assets of discontinued operations - 1,058,237 ----------- ----------- Total current assets 4,300,152 5,425,431 Property and equipment, net 697,688 705,824 Goodwill, intangibles, deposits and other assets 356,107 361,699 ----------- ----------- Total assets $ 5,353,947 $ 6,492,954 =========== =========== LIABILITIES AND STOCKHOLDERS` EQUITY Current liabilities: Accounts payable $ 396,335 $ 363,497 Other current liabilities 748,031 818,979 ----------- ----------- Total current liabilities 1,144,366 1,182,476 Long-term debt 2,740 14,740 Deferred income taxes 67,907 71,336 Other long-term obligations 7,707 7,377 Equity interest in consolidated entity - 1,173,961 Stockholders` equity 4,131,227 4,043,064 ----------- ----------- Total liabilities and stockholders` equity $ 5,353,947 $ 6,492,954 =========== =========== |
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aus der Diskussion: | 3com news! (neu) |
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