3Com Rallies As FY Q1 Results Top Estimates

3Com (COMS) shares are moving higher in early trade on stronger-than-expected results for the company’s fiscal first quarter ended August 28.

For Q1, COMS posted revenue of $290.5 million, down from $342.7 million a year ago, but above the Street consensus at $278.2 million. Non-GAAP profits of 8 cents a share were nicely ahead of the Street at 5 cents.

The networking equipment company noted that despite the lower revenues, gross margin in the quarter improved to 57.3% from 55.3% a year ago.

COMS today is up 25 cents, or 5.2%, to $5.03.