3Com, the network technology company, reported a first quarter net loss of $232.4m (£158m) on sales of $389.6 (£265m). This represents a 293% increase in losses compared with the same period last year when the company lost $59.2m.
3Com also saw its first-quarter revenue tumble by 58% compared to the year-ago quarter, when it recorded revenue of $933.8m (£657.5m).
3Com has struggled in recent quarters and is in the middle of a planned restructuring. The company downplayed the impact of the results, however, calling the first quarter "a quarter of solid progress in 3Com's transformation".
Among the bright spots noted, 3Com said it is on track with efforts to boost margins and is ahead of plans to reduce costs, including staff cuts. The company said it is on track to cut 1,000 more staff by November. The cuts will reduce 3Com's staff from 12,000 to 6,000, the statement said. In addition, the company said it has $1.45bn (£0.98bn) in cash and short-term investments.
Looking ahead, the company claims it is on track to show a profit during the fourth quarter and should see a return to growth with the introduction of new products during the course of the year, despite ongoing uncertainty about the economy.