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3Com lifts 1Q guidance on strong China business Tuesday August 5, 9:36 am ET 3Com raises profit and sales forecasts for fiscal 1st quarter on strong China operations
MARLBOROUGH, Mass. (AP) -- 3Com Corp., which makes computer networking gear, on Tuesday raised its financial forecasts for the current quarter, saying sales in China have been better than expected. The Marlborough, Mass.-based company said it expects an adjusted operating profit of $28 million to $32 million, or 6 cents to 8 cents per share, for the fiscal first quarter ending Aug. 29. The company previously forecast $15 million to $20 million, or 3 cents to 5 cents per share.
The three analysts polled by Thomson Financial had on average project earnings of 4 cents per share.
3Com projects revenue of $335 million to $340 million for the quarter, up from a previous forecast of $325 million to $330 million. Analysts expect $327.7 million in revenue.
The estimates exclude proceeds from a patent suit that was resolved in the quarter. 3Com said in July that it would receive $70 million from Realtek Semiconductor Corp. as a settlement.
3Com said sales in China would be up 10 percent, mainly because of strong orders from Huawei.
In morning trading, shares of 3Com climbed 24 cents, or 12.9 percent, to $2.10. The stock has ranged from 41.76 to $5.11 over the past year.