Confidence in tech stocks wanes with 3Com profit warning

Networking giant 3Com has issued a profits warning for the quarter that ended last Friday, further shaking market confidence in the technology sector.

3Com now expects revenues for the quarter to be between $785m and $800m, about $100m less than the company predicted in September. The company had estimated a net loss per share of eight cents, but the actual loss looks to be closer to 20 cents per share. The company's market capitalisation is $4.65bn. Bruce Claflin, 3Com's president and COO, blamed the results on a slowdown in purchases from telecoms companies. He said in a statement: "3Com has not been immune to the trends affecting the telecom sector. However, we believe this sector has substantial long-term growth opportunities and we are investing accordingly." Final results for the quarter will be released after the close of market on 21 December.