Thursday, July 09, 2009

3Com Pats Itself On The Back

3Com (COMS) Reports Q4 results and year end claiming revenues are up, profits are up and cash flow are up. Bob Mao, 3Com’s chief executive officer reports that he is pleased with the quarter and the year. To quote him “We had a very good year, delivering on all three of our key goals: revenue growth, operating margin improvement and positive cash generation from operations. We have a clear, articulated strategy that we are successfully implementing.”

OK Bob so you have a clear articulated strategy. When you read your quote it talks about business school stuff. Not what you did to get there. The press release is management just patting themselves on the back. The board should not be accepting this skimpy report as adequate. Investors are disappointed by the lack of insight provided into the company’s affairs.