3Com

(COMS)

lowered its third-quarter revenue guidance, saying sales in its network connectivity and CommWorks divisions came in worse than expected.

The company forecast revenue of $240 million to $245 million in the quarter, which ended Feb. 28. Analysts surveyed by First Call were predicting revenue of $275.2 million, on average, and a loss of 3 cents a share. 3Com said gross margins remain around 45% to 47%.

By segment, enterprise networking sales are expected to fall 13% to 14% sequentially on a weak North American market. Connectivity sales will fall by more than the previously expected 20%, while CommWorks sales are seen falling 7% sequentially, compared with the company's previous guidance for roughly flat sales sequentially.

The company also expects operating expenses, excluding charges, will fall modestly, in line with previous guidance. Cash and equivalents at the end of the third fiscal quarter are expected to remain above $1.4 billion.