3Com halts cable/DSL modem line; revises Q4 look
None of that euphemism stuff for 3Com. The company said in a statement that, "There is an industry-wide glut of consumer cable and DSL modems that has driven down prices and margins."
As a result, 3Com is discontinuing its consumer cable and DSL modem product lines and refocusing on more profitable markets.
The decision, it says, doesn't affect its business DSL routers and modems for small business and enterprises.
The company also noted its fourth-quarter revenue will be in the $450 million to $475 million range — lower than a previously announced $550 million to $600 million.
"Business conditions worsened in 3Com's fourth quarter (ended June 1)," President and CEO Bruce Claflin says in a statement. The company is taking steps to adjust, and discontinuing "consumer DSL and cable modem products is an important part of our plans."
The company will announce its results June 26.