US Robotics? penchant for high inventory levels will put a severe dent in the profitability of its parent 3Com.
3Com, which acquired USR for $6.6 billion, warned that flushing out $600 million-worth excess stock will reduce expected earnings of 44 cents a share to zero in Q3. Revenue will also be down to about $1.2 billion - $400 million below what analysts expected.
The news pushed 3Com?s share price down to just over $35. This time last year it was priced at over $80.
Industry analysts said USR?s high level of inventory was mostly to blame. Modem prices have fallen faster than modem technology has advanced. When 3Com bought USR last February, a 33.6Kbaud fax modem carried a retail price of #150; now it would sell for about #40. Under the new regime, 3Com resellers will hold between six and eight weeks inventory, compared to up to 12 weeks currently. ends
Using photocatalysts to convert carbon dioxide into usable energy such as methane or ethane
Trained on curated data from Moorfields Eye Hospital, the neural network also shows clinicians how it reached its judgement
Yokohama National University demonstrate technology that could lead to a fault-tolerant universal quantum computer
Top-of-the-range Threadripper 2990WX now available from Scan, Ebuyer, Overclockers, Novatech and Amazon