3Com Corporation (NASDAQ: COMS) late yesterday afternoon reported financial results for its fiscal 2008 third quarter. Revenue in the quarter was $336.4 million compared to revenue of $323.4 million in the corresponding period in fiscal 2007, a 4 percent increase. Net loss in the quarter was $7.8 million, or $0.02 per share, compared with a net loss of $4.8 million, or $0.01 per share, in the third quarter of fiscal year 2007. The net loss increase was a result of a $6.1 million non-cash deferred tax liability. 3Com generated $44.1 million in cash from operations.

“On an operational basis we had a very strong quarter,” states Edgar Masri, 3Com President and CEO. “In the third quarter, our revenues were at the highest level since we began consolidating H3C revenue; our gross margins reached a record high of 53 percent; we generated a non-GAAP net income margin of 10 percent; and we were cash-flow positive for the second consecutive quarter. We still have more work to do, but I am very pleased with the continued progress we are making in building a growing and profitable business.”

3Com Corporation is a provider of secure, converged voice and data networking solutions for enterprises of all sizes. 3Com offers a line of innovative products, service and support. 3Com also includes H3C Technologies Co., Limited (H3C), which is a China-based provider of network infrastructure products.

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