UPDATE 1-3Com loss narrows as revenue increases on deal

(Adds share price, background on stake acquisition)

SAN FRANCISCO, March 22 (Reuters) - 3Com Corp. (COMS.O), a maker of communications network equipment, on Thursday reported a narrower quarterly loss, as revenue jumped on the acquisition of a business it formerly shared with Huawei Technologies Co. Ltd. HWT.UL

Shares of 3Com rose 2.9 percent in extended trading following the earnings report, after closing down 2.1 percent at $3.79 in regular trading on Nasdaq.

The net loss in the company's fiscal third quarter was $4.8 million, or 1 cent per share, compared with a year-earlier loss of $32.8 million, or 8 cents per share. Revenue increased to $323.4 million from $177.6 million after the acquisition of the former Huawei joint venture, called H3C.

Net income included expenses for restructuring, in-process research and development and stock-based compensation totaling 5 cents per share. Revenue from H3C rose 35 percent to $195 million.

Analysts, on average, expected a profit before certain items of 2 cents per share and revenue of $329.1 million, according to Reuters Estimates. On a net income basis, analysts had forecast a loss of 2 cents per share.

3Com of Marlborough, Massachusetts, in November agreed to buy Huawei Technologies' 49 percent stake in H3C for $882 million, giving 3Com full ownership of the joint venture in which it had held a 51 percent stake.

H3C gives 3Com access to Asian markets, where Huawei, China's largest communications equipment maker, has a strong presence. Huawei got an entree into U.S. and European markets through 3Com.

3Com said on Thursday it received final approval from Chinese regulators to buy Huawei's H3C stake. The company expects the acquisition to be completed on March 29.

3Com said it expects to fund the purchase with about $470 million in cash and about $430 million from a senior secured bank loan at H3C.

((Reporting by Philipp Gollner, editing by Richard Chang; Telephone: +1 415 677-2547, E-mail: philipp.gollner@reuters.com)) Keywords: 3COM RESULTS/

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