3Com Corp. posted smaller-than-expected losses for its fourth quarter, which ended June 2, while it continued the restructuring that led it to spin off the Palm personal digital assistant division.
For the fourth quarter, 3Com had revenue of $764 million, more than the $675 million to $750 million the company had forecast. It had an operating loss of $340 million, and a net loss of $146.8 million, or 42 cents a share, bettering average analyst predictions of a 44-cent-per-share loss. A year ago, before its restructuring, 3Com earned $87.5 million for the fourth quarter. For the year, 3Com had revenue of $4.3 billion and income of $6.7 million, compared with $5.2 billion in revenue last year.
In addition to the Palm spin-off, 3Com has dropped its analog modems and local and wide area network core chassis products. 3Com chairman and CEO Eric Benhamou credited two factors for better- than-expected performance: "The business arenas that we exited are declining sharply in revenue, and the high growth of our product lines, specifically those areas of wireless, IP telephony, and broadband technologies."