3Com Cutting 900 Jobs - TheStreet

3Com Cutting 900 Jobs

The struggling gearmaker posts a second-quarter loss.
Author:
Publish date:

3Com (COMS) posted a mixed second quarter Wednesday and said it would trim its workforce by more than a quarter in the second half of its fiscal year.

The Marlborough, Mass., networking gearmaker posted a latest-quarter loss of $139 million, or 37 cents per share, on $181 million in sales. That compares with a first-quarter loss of 29 cents a share on sales of $162 million, and a year-ago loss of 19 cents a share on $272 million in sales.

Analysts had been looking for a much narrower loss of 14 cents a share on sales of $166 million, according to a Multex tally.

3Com is a month into a joint venture with China's

Huawei

, a large hardware maker known best for its low-cost networking gear. On Wednesday the company said the venture is well under way. "The transition to the JV went smoothly, and this new company is fully operational," CEO Bruce Claflin said.

But elsewhere the news was mixed. "While Q2 was very encouraging, much must still be done in order to realize our potential," Claflin said.

3Com said about 900 people would be cut from its 3,300-employee staff as part of previously announced cutbacks. These cuts come as a result of ongoing outsourcing of manufacturing work.

3Com shares, which fell 20 cents, or 2%, to $7.70 by Wednesday's close, fell an additional 5 cents in aftermarket trading.