Strong sales of 3Com’s Palm Computing products helped the company beat analysts’ expectations for its fiscal first quarter, although revenues from its network interface cards continued to slide.
Turnover for the quarter, which ended on 27 August, fell slightly to $1.38 billion from $1.4 billion a year ago, but profits leapt to $137.5 million or $0.38 per share, following a tax credit of $10.2 million related to the company's merger with US Robotics. Profits in the year ago quarter were $93.7 million or $0.26 per share.
The First Call analysts' consensus had expected earnings per share of $0.24.
Eric Benhamou, 3Com's chairman and chief executive, said: "We are pleased that our emphasis on operational improvements is having a substantial positive impact on our profitability, particularly in our systems business."
Sales of handheld devices from the firm's Palm Computing business, which is due to go public soon, increased by 50 per cent to $174.2 million, while revenues from its switch, hub and remote access concentrator unit jumped nine per cent to $674.2 million.
Its personal connectivity business, which includes network interface cards and modems, turned in a disappointing performance, however, with revenues falling 19 per cent to $539 million.
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