3Com Lowers Financial Guidance Citing Weak Enterprise Sales in North America

3Com lowered its financial outlook for the quarter ended 28-February-2003, saying it now anticipates revenues to be in the range of $240 million to $245 million. Enterprise Networking sales are expected to be approximately 13 to 14% below the prior quarter due largely to weakness in the North American market. Connectivity sales are anticipated to decline sequentially by slightly more than the previous guidance of 20%, after setting aside the $15 million in royalties received in the previous quarter. CommWorks sales are expected to be down approximately 7% compared to the company's guidance for roughly flat sales sequentially. Gross margins are expected to be within the 45 to 47 percent range provided in previous guidance.
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