Two weeks after the approval of its mega-merger with US Robotics Corp, networking giant 3Com Corp has reported fourth-quarter results which should calm any fears about a rapid slowdown in sales. Fourth-quarter net income was up 8% from this time last year – excluding a one-time charge in 1996 – at $89.2m on revenue up 25.7% at $829.9m. Net profits for the year to May 31 were up 110% at $373.9m on revenue that rose 35.2% to $3,147.1m. Shareholders approved the US Robotics merger in a meeting on June 11, and first results from the combined entity are not due until the quarter ending August 31. But not everybody is pleased with the prospects of a merger and there are still seven class-action law suits outstanding from former US Robotics stockholders who feel they’ve been sold down the river at a time when their stock was just about to fly. 3Com’s recent growth has been falling behind the 70% historic rate of the last two years. Revenues actually fell in the quarter ended February 1997 and the company warned in its own quarterly report that historic growth rates could not continue, but the latest results were in line with expectations and the shares slipped $1.375 on Wednesday to close at $48.375.
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