3Com Corp. (Nasdaq: COMS) was down 1 1/4 at 47 7/16 early Wednesday after reporting a loss for the fourth quarter ended June 2nd.
The company reported an operating loss of $340 million, which was better than the $450 to $500 million loss officials had predicted. However, the net loss totaled $146.8 million, or 42 cents per share, compared with a profit of $87.5 million, or 24 cents, in the year-earlier quarter. Sales fell 38 percent.
The company is in the midst of a restructuring. In February, it spun off its Palm, Inc. (Nasdaq: PALM) handheld computer division, and is also getting rid of unprofitable product lines.
“Given the magnitude of the changes implemented during the quarter, I am encouraged by our results and the progress we made on our transformation milestones,” said Chairman and Chief Executive Officer Eric Benhamou.
The restructuring is on track to be completed by the end of the first quarter, 3Com said.