3Com is likely to reorganize, according to analysts looking at the company’s post-Palm IPO structure.
The California-based network vendor, which is scheduled to announce its third-quarter earnings after the market closes today, has also rescheduled it’s analyst briefings, which were to be held in February. The meeting will now be held in March, allowing the dust to settle on the spin-off of its Palm business on March 2.
Stan Schatt, an analyst at Giga Information Group in Massachusetts, said 3Com is trying to be all things to all people.
Schatt said: "They're (3Com) trying to be a consumer company, a network company and a service provider company. Cisco is moving into their territory in a big way in the small- and mid-market business. In the service provider space, (3Com has) been successful, but there's a lot of competition from other players."
Schatt said 3Com is "going through an identity crisis". He added the company is concerned about what kind of revenues it will have to generate to keep its stock price at its current levels, and where those revenues will come from.
3Com officials declined to comment on the prospect of a possible restructuring.
Although 3Com has high hopes for its wireless business, wireless is still an embryonic market that will require a lot of effort to generate sales, said Schatt.
"I think (3Com) is looking at the Cabletron and Lucent examples, and they're trying to come up with a plan that makes sense for the company in the future," Schatt said.
Lucent Technologies in Murray Hill, New Jersey, recently announced it would spin off its enterprise-networking business as a separate company. Cabletron Systems in Rochester, New Hampshire, said last month that it would split up its business into four separate companies.