3Com Corporation has reported financial results for its first quarter of fiscal year 2003 ended August 30, 2002. Revenues for the quarter were $305 million, down 10% from the prior fiscal quarter. Net loss was $32 million. 3Com ended Q1 with a cash balance of $1.39 billion.
For Q1 gross margins were $145 million, up approximately 4%. Operating expenses were $172 million, a decrease of $15 million sequentially. The net loss was $32 million, including restructuring charges of $23 million. This compares to a net loss of $19 million, in the previous quarter and a net loss of $223 million, in the first quarter of the prior fiscal year.
The company ended the quarter with $1.39 billion in cash and short-term investments, an increase of $5 million from the previous quarter, while reducing debt by $35 million. Strong working capital management continued, with a cash-to-cash cycle of eight days. Collection of accounts receivable (DSO) was 41 days, average days payables outstanding (DPO) was 64 days, and average inventory turnover was 11.6 turns