Bolstered by favorable conditions in the networking market and its continuing efforts to improve its operations, 3Com Corp. today reported second-quarter earnings that surpassed Wall Street expectations.
The vendor reported revenue for the period, which ended Nov. 27, of $1.5 billion, up 29% from the year-ago quarter. Net income was $132.9 million, or 36 cents a share, compared with $4 million, or a 1 cent a share, year-over-year.
Revenue from systems products was $744.7 million, up 25% from the same period last year. The company's Client Access product grabbed $795.8 million in revenue, up 33% from the year-ago quarter.
Separately, 3Com said it has signed an agreement to supply network interface cards and modem products for Hewlett-Packard's entire line of PCs. The deal is expected to significantly boost 3Com's volume of business with HP.
Earlier this week, 3Com competitor Cabletron Systems Inc. reported revenue of $329.9 million, down from $331.8 million for its third quarter, ended Nov. 30. Net income was a loss of $21.2 million, or 12 cents a share, excluding a one-time charge of $63.8 million, or 38 cents a share related to acquisitions. This compares with net income of $19.9 million, or 12 cents a share, year-over-year. Earlier this month, the company warned it would not report a profit for the third quarter and blamed price pressures and shifts in technology.