Network equipment maker 3Com has reported revenue of $322.2m in the second quarter of fiscal 2010, down 9.1% compared to a revenue of $354.6m in the same period last year. Revenue rose 10.9% sequentially.
The company has achieved a gross margin 60.1% in the quarter, compared to 57.3% in the first quarter of fiscal year 2010 and 56.3% in the same period last year. Operating profit margin was 4.5% and cash from operations was $118.2m in the second quarter.
For the quarter ended November 27, 2009, the company posted a net income of $20m or $0.05 per diluted share, compared to $12.9m in the same period last year. The results include a favourable tax adjustment of $10.8m offset in part by transaction costs of approximately $4.6m relating to the company’s pending merger with Hewlett-Packard Company.
Revenue grew sequentially across all major sales regions, primarily driven by recovery in the Europe, Middle East and Africa region and in Latin America business, and continued strong performance in China. Sales in Huawei continued to decline, coming in at $18.2m, down 35.3% sequentially, while China based direct-touch sales reached $151.1m in the quarter, up 21.9% sequentially.
Bob Mao, chief executive officer of 3Com, said: “We are pleased with 3Com’s performance in the quarter. We exceeded our guidance for revenue, operating profit, earnings per share, and our cash balance, while delivering sequential revenue growth across all our sales regions and achieving record gross and operating margins.”
