3Com reported financial results for its fiscal 2008 second quarter, which ended November 30, 2007. Revenue in the quarter was $317.8 million compared to revenue of $333.0 million in the corresponding period in fiscal 2007, a 4.6 percent decrease. Net loss in the quarter was $35.6 million, or $0.09 per share, compared with a net loss of $3.5 million, or $0.01 per share, in the second quarter of fiscal year 2007.
3com said this net loss increase was primarily a result of purchase accounting related to the acquisition of Huawei’s 49 percent ownership of H3C. On a non-GAAP basis, net income was $13.0 million, or $0.03 per diluted share, compared with net income of $7.8 million, or $0.02 per share, for the second quarter of fiscal year 2007.
“We made progress in several areas of the business in the second quarter,” said Edgar Masri, 3Com President and CEO. “While our overall revenue was lower than we anticipated, our gross margins were the highest they’ve been in recent history; we once again generated cash from operations; and we recorded our fifth consecutive quarter of non-GAAP operating profit. I also am very pleased with the progress of our Europe, Middle East and Africa region, which continued its rebound with strong top- and bottom-line improvements.”http://www.3com.com
