3Com Expects Narrow Profit Margin

3Com Corp. said weak demand in Europe and the integration of recently acquired U.S. Robotics Corp. will clip profit margins in the current quarter. Analysts and investors said the maker of computer networking equipment told them that profit margins and sales will pick up later this year. Santa Clara-based 3Com refused to allow reporters to attend its Network Connections Conference briefing. 3Com stock fell $2.25 to close at $55.75 on Nasdaq. Earlier, the shares had traded as low as $54.63. 3Com said its operating margin will be about 16% for its first quarter ending in August, according to Martin Pyykkonen, an analyst at Furman Selz. Some analysts had expected a margin as wide as 20%.