3 Com Bows Out Of The Networking Biz
The costs of 3Com's bid to dominate the personal-computer networking business are starting to add up. On Jan. 7, 3Com said it would stop selling software for PC networks since it has been unable to gain share against competitors. That's going to mean write-downs of $45 million and layoffs of 235 employees, or 12% of its work force. On Jan. 8, the stock dropped 26% on the news, to 5 3/4. Analysts now predict a $40 million loss for 3Com's third quarter, ending Feb. 28, on flat sales of $106 million.