3Com Reports Better-Than-Expected Profit

3Com Corp., the No. 2 networking company, reported better-than-expected fiscal second-quarter earnings on surging demand for its PalmPilot computing device and rising Internet equipment sales. Profit before a charge for the latest quarter rose to $133.4 million, or 36 cents a share, from restated net income of $4.02 million, or a penny a share, a year ago. Revenue at Santa Clara-based 3Com rose 29% to $1.54 billion. The company was expected to earn 31 cents, the average estimate of analysts polled by First Call. The year-earlier figures include results from U.S. Robotics Corp., which 3Com acquired last year. The year-earlier results were restated in March, at the urging of the Securities and Exchange Commission, to more accurately reflect the acquisition. 3Com shares rose $1.50 to close at $48.63 on Nasdaq. The company reported earnings after the close of regular U.S. trading.