Computer business and virtual IT player 3Com Corp. announced last week it had dropped to $15.2 million from the previous figure of $15.2 million.  The company announced it would sell shares in its TippingPoint network security subsidiary.  

The loss reported was through June 30.  Sales rose 22 percent to $310.9 million, in spite of the loss.  Virtual IT industry company 3Com has not shown a profit since 2000, when it marketed the first Palm Pilot, which eventually spun off into its own business.

3Com president and CEO Edgar Masri stated that he was unable to offer any details about the first public offering of TippingPoint stock.  However, before the announcement, the company had stated it would start selling shares by December 2007.   Masri declared he believes selling TippingPoint stock will help the company improve its virtual IT offerings and focus on its finances and profitability.   

In the last quarter, 3Com spent $91 million in order to buy 49 percent of its joint project, H3C from partner Huawei Technologies.  The purchase price was $882 million, which makes 3Com the second-largest equipment maker in the virtual IT and computer business behind Cisco.  

Despite losses, Masri assured the public that the company had reached profitability goals for the quarter and that H3C would help 3Com improve in the future and become a stronger force in the virtual IT market.

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Blogged By:  Joshua Feinberg