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3Com shares soar in early trading

3Com jumps more than 15 percent in trading this morning, a day after posting quarterly earnings that slightly beat analysts' expectations.

Jeff Pelline Staff Writer, CNET News.com
Jeff Pelline is editor of CNET News.com. Jeff promises to buy a Toyota Prius once hybrid cars are allowed in the carpool lane with solo drivers.
Jeff Pelline
3Com jumped more than 15 percent in trading this morning, a day after posting quarterly earnings that slightly beat analysts' expectations.

At least two analysts upgraded their ratings on the stock today. Bankers Trust Alex Brown raised its rating to "buy" from "market perform," and CS First Boston raised its rating to "buy" from "hold."

The rebound was sizable for a company that has been clouded by uncertainties, largely since its buyout of US Robotics.

3Com shares were trading up 4.25 to 31.3750 in midday trading. The stock has traded as high as 59.6875 and as low as 22.9375 in the past 52 weeks.

The company recorded net income of $65.9 million (18 cents per share), up from a profit of $41.8 million (13 cents per share) for the like period a year ago. Analysts had expected the networking giant to post a profit of 17 cents, according to First Call.

3Com's results prompted chief executive Eric Benhamou to declare: "We have clearly turned the corner."

Reuters contributed to this report.