3Com yesterday reported growth in both revenue and net income for its third fiscal quarter, ended Feb. 26. The networking company said its ability to keep a strong balance sheet helped it hang on to its gross margins despite a slowdown in enterprise demand in the North American and Latin American markets.
For the quarter, revenue was $1.4 billion, compared with last year's third-quarter revenue of $1.3 billion. Net income for the period was $89.6 million, or 24 cents per share, vs. last year's net income of $13.9 million, or 4 cents per share. The bulk of 3Com's growth came from its systems products, which grew 28% over last year to contribute $703.9 million of total revenue. Client-access products comprised the other half of the revenue, but saw only a 1% increase to $706.6 million.
Along with the earnings announcement, 3Com disclosed that it has received board approval to repurchase 10 million shares over an unspecified period of time, bringing the total repurchase authorization to 12 million shares. The company has not disclosed its intentions for the shares.