“3Com Corporation (3Com) provides secure, converged networking solutions on a global scale to businesses of all sizes. The Company’s products form integrated solutions and function in multi-vendor environments. During the fiscal year ended May 30, 2008, it was organized into four segments: H3C Technologies Co., Limited (H3C), Data Voice Business Unit, TippingPoint, and Corporate Expenses. Its H3C segment is its core for engineering and product development of an array of networking products and solutions, and it sells into the China market. Its DVBU segment designs and markets networking solutions targeted at customers in developed networking markets, and sells H3C’s products and H3C-sourced networking gear on a worldwide basis. TippingPoint offers customers’ purpose built appliance security solutions through intrusion prevention systems (IPS), technology and related virus protection services the Company calls Digital Vaccine.” [1]
Criticism
Business Ethics
- 3Com agreed to pay $259 million in cash to settle allegations that the computer networking firm hid a $160 million loss at its U.S. Robotics subsidiary. The settlement is believed to be the largest ever for a shareholder suit in California and the fifth-largest nationwide. 3Com did not admit to any wrongdoing, and the company’s executives were able to keep their gains.Source: The San Francisco Chronicle, November 4, 2000
- In 2003, President and CEO Bruce Claflin made $4,852,813 in total compensation including stock option grants from 3Com, which some have deemed as being overly excessive CEO compensation.Source: AFL-CIO
- In March of 2008, a possible merger between 3Com and the Chinese firm Huawei Technologies was nixed by the investment firm brokering the deal, Bain Capital Partners. This news came after the Treasury Department-led Committee on Foreign Investment in the United States (CFIUS) probed the deal and deemed it a threat to the national security interests of the United States, announcing “it intended to take action to prohibit that transaction.” Under the deal, Bain and Huawei would assume control over 3Com. Huawei Technologies, sometimes referred to as the Cisco Systems of China, is a state-run telecommunications firm founded by a former Chinese military officer. Huawei has been involved in a number of scandals, including violating U.N. sanctions against pre-US invasion Iraq and accusations of corporate sabotage against rivials like Cisco and Fujitsu. Source: Washington Times
Political Influence
- In December 2000, 3COM contributed $10,000 to the The National Congressional Republican Congressional Committee.
Brands & Subsidiaries