3Com's 1Q Profit Falls, But Tops Forecasts

MARLBOROUGH, Mass. (AP) — 3Com Corp., a network software and equipment maker, said Thursday its profit fell sharply in the first quarter from results that included a big gain a year earlier, but it still topped Wall Street expectations.

The company earned $7.5 million, or 2 cents per share, for the three months ended Aug. 28, down from $79.8 million, or 20 cents per share, a year ago when the company won a $70 million patent ruling.

Excluding unusual items, 3Com said it would have earned $30.6 million, or 8 cents per share, in the most recent quarter. On that basis, analysts were expecting 5 cents per share, according to a Thomson Reuters survey.

Sales fell 15 percent to $290.5 million from $342.7 million a year ago, while analysts were looking for $278.2 million.

Shares jumped 21 cents, or 4.4 percent, to $4.99 in morning trading.