The 3Com saga One-time industry pillar hits 25

摘要

3Com turns 25 this June, but the Ethernet pioneer probably won't spend much time celebrating - it's too busy fighting to stay relevant. The last several years have been difficult for the longtime industry mainstay; it's been a dizzying, roller-coaster ride of spin-offs, write-offs, layoffs and strategic about-faces. Meanwhile, the company's financial position has steadily deteriorated. In 1999, 3Com was a profitable $5.8 billion company; last year it was a money-losing $932 million shadow of its former self. And a return to profitability seems a long way off - 3Com has lost $330 million in the first three quarters of fiscal 2004. Founded in 1979 by Ethernet co-inventor Bob Metcalfe, 3Com still enjoys enormous brand recognition that dates to its early leadership position in network adapter cards. But the company also has a history of missteps and failed opportunities, including expensive forays into operating system software, analog modems and Internet radio. In 2000, 3Com made what some analysts say was its most damaging move of all. It walked away from its enterprise LAN equipment business, ceding the market to Cisco, angering dealers, driving away customers and eroding revenue.