3Com Reports Third-Quarter Results for Fiscal 2009

KUALA LUMPUR, 23 March 2009 - 3Com Corporation (Nasdaq: COMS) today announced that it has reported financial results for its fiscal 2009 third quarter, which ended February 27, 2009. Revenue in the quarter was $324.7 million, compared to revenue of $336.4 million in the corresponding period in fiscal 2008, a 3.5 percent decrease.

Net income in the quarter was $1.9 million, or $0.00 per diluted share, compared with a net loss of $7.8 million, or $(0.02) per share, in the third quarter of fiscal year 2008. On a non-GAAP basis, net income was $49.1 million, or $0.13 per diluted share, compared with net income of $34.2 million, or $0.08 per diluted share, for the third quarter of fiscal year 2008.

Revenue for the first nine months of fiscal year 2009 was $1,021.9 million, compared with $973.6 million for the same period in the prior year, a 5.0 percent increase. Year-to-date net income, on a GAAP basis, was $94.6 million, or $0.24 per diluted share, compared with a net loss of $62.1 million, or $(0.16) per diluted share, for the first nine months of the prior year. On a non-GAAP basis, net income was $139.4 million, or $0.35 per diluted share, compared with net income of $59.4 million, or $0.15 per diluted share, for the first nine months of fiscal year 2008.

“I am very pleased with 3Com’s performance in the quarter, especially given the current economic conditions,” said Bob Mao, 3Com CEO. “Our China business remained strong in the quarter. Our TippingPoint segment achieved record revenue. The strength in these two segments, combined with stringent cost management, allowed us to offset weakness in other geographies and deliver substantially higher year-over-year profit.”

In the third quarter, 3Com generated $100 million in cash from operations. 3Com’s cash and cash equivalents balance at February 27, 2009, was $560.0 million. Please click here for a complete version of the financial tables.