3Com’s Disappearing Act
It’s time for 3Com to work a little magic. The VAR Guy, like Wall Street insiders, hears the company may go private. That disappearing act could be a wise move.
3Com retains its strong brand among small and midsize customers. And a partnership with China’s Huawei Technologies is thriving. Thanks mostly to that relationship, 3Com’s 1Q 2007 revenue leaped 69 percent to $300 million. Nevertheless, the company remains a shell of its former self. At its peak in the 1990s, 3Com’s annual revenues were $6 billion.
Going private would allow 3Com to build a long-term business strategy. Instead of worrying if its current quarterly results can beat analyst expectations by that magic “penny-per-share” measurement, a private 3Com could quietly go about its business and accept the occasional short-term setback if a long-term strategy was truly in place.