3Com Drops 2 Products, Cuts Revenue Estimate

3Com Corp. lowered its fiscal fourth-quarter revenue estimate as much as 25% and eliminated two products after phone companies spent less on network equipment.

Sales for the quarter ended June 1 were $450 million to $475 million, the company said in a statement. In March, 3Com said revenue would be $550 million to $600 million. Last month, it forecast “a wider range of outcomes than indicated.”

3Com will stop making cable and digital subscriber line, or DSL, modems that speed Web service over phone and cable-TV lines.

The shares of Santa Clara, Calif.-based 3Com rose 16 cents to close at $5.66 on Nasdaq, and fell as low as $5.03 after the announcement.

3Com is expected to post a per-share loss of 45 cents for the quarter, according to analysts surveyed by First Call/Thomson Financial.

Details about the product eliminations will be discussed June 26, the company said.