3Com (COMS) shares are on the rise this morning after the company raised its guidance for its fiscal first quarter ending August 29.
The company now sees revenue for the quarter of $335 million to $340 million, up from previous guidance of $325 million to $330 million. 3Com sees non-GAAP profits for the quarter of 6-8 cents a share, up from old guidance of 3-5 cents. The company expects gross margin to be up at least one percentage point from FY Q4.
3Com said it now expects sales to China, including both direct sales and sales to Huawei, to be about 10% higher than in Q4; it had previously expected slight sequential growth.
The company noted that it continues to expect sales to Huawei to decline over the long term, both in absolute dollar and as a percentage of total sales.
3Com said it expects to end Q1 with about $530 million in cash.
This morning, COMS is up 17 cents, or 9.1%, to $2.03.
Even with the spike today, the cash position is about 64% of 3Com’s $851 million market cap.
Parece-me uma boa aposta face ao cash que tem versus capitalização bolsista.
