3Com Sounds Warning About Job Cuts, Earnings

3Com Corp. reported a fiscal third-quarter operating loss of $122.8 million, or 36 cents a share, in line with its reduced forecast, as sales plunged 45% to $629.6 million.

The network equipment maker had operating profit of $80.3 million, or 22 cents, a year ago.

3Com said it expects to make more job cuts and predicted its fourth-quarter loss would be far wider than a year earlier, making it the latest large technology company to sound a warning as the U.S. economy slows.

Chief Executive Bruce Claflin said revenue won’t rebound for at least three more quarters. Analysts had expected 3Com to report a loss of 33 cents, then adjusted forecasts to a loss of 43 cents after the warning.

3Com said last month that it would fire 1,200 people, or 10% of its work force. The new number of firings hasn’t been determined yet, Claflin said.

The company, which one year ago spun off hand-held computer maker Palm Inc., said it also is scrapping its Audrey counter-top Web-access device and Kerbango Internet radio. Shares of Santa Clara, Calif.-based 3Com fell 22 cents to close at $6 on Nasdaq.