[The year] 2001 has been really lousy. I think we are all just looking forward to turning the page on a lousy year. |
3Com developed a strategy to become a leading global provider of secure converged networking solutions. Moving forward, the 3Com Board intends to recruit a CEO who can build on the positive trends of the past few quarters as we continue to execute our strategy and drive 3Com toward profitable growth. |
As we enter fiscal 2000, rapid growth of emerging new businesses such as handheld computers and broadband access, coupled with success of our systems solutions, are transforming the growth profile of the company. |
Balance sheet performance remained strong and improved during the quarter, enabling us to preserve gross margins despite the impact of seasonality and an unexpected slowdown in end-user demand in the North and Latin American enterprise markets. |
Our alliance forms the basis to serve a substantially expanded user base by offering advanced network infrastructures for integrated data and multimedia services. |
Our alliance with CAIS will make it easy for travelers to get access to the information they need while on the road. |
Our seasonally weak third quarter was exacerbated by several factors. |
Over the quarter, our pro forma gross margins grew to nearly 35 percent, we generated positive cash flow from operations, and channel inventory remained within our desired range. And we have positioned the company to address broader market opportunities with innovative new products this fall and when the industry moves to a new growth phase. |
Palm executed quite well in a down market. |
Silicon Valley is a hotbed of innovation in wireless technologies. Establishing a ubiquitous network will enable the deployment of a new generation of broadband services for our entire community, including small businesses, schools, non-profits, and all the citizens of our region. |
So far we seem to be off to a very good start. Clearly the two companies have different cultures but these cultures are proving to be compatible. |
Tangible progress across virtually every aspect of our income statement and balance sheet gives us increased confidence in our ability to execute and to return to profitability. |
The handheld industry has started to move into a more favorable period after a year of significant difficulties and overall shrinkage. |
This quarter's significant increase in revenue and improved results over last quarter reflect that we have gained traction in the marketplace and restored operational rigor. |
Under Bruce's leadership, 3Com developed a strategy to become a leading global provider of secure converged networking solutions for small, medium and large enterprises. |