2 Top Execs to Quit 3Com’s Palm Computing

Santa Clara-based 3Com Corp. said two top executives of its fast-growing Palm Computing unit, including Palm founder Jeff Hawkins, are resigning from the No. 2 networking-equipment maker to start a new company. Hawkins, Palm’s chief technology officer, and Donna Dubinsky, 3Com vice president and general manager of Palm Computing, will leave this week, Dubinsky said. The pair, who came to 3Com when it bought US Robotics Corp. in June 1997, will pay 3Com an undisclosed fee to license its Palm operating system. The PalmPilot is among the fastest-selling computer devices in history, with more than 1.6 million units sold since May 1996. Although the hand-held device contributes less than 10% of 3Com’s revenue, Chief Executive Eric Benhamou last week told analysts that PalmPilot sales were “one of the brightest spots in the [company’s] fiscal year.” Whether that team will remain at 3Com was unclear. 3Com shares fell 38 cents to close at $29 on Nasdaq.