3Com appoints new CEO

IDG News Service - 3Com Corp. today named R. Scott Murray its new CEO, replacing Bruce Claflin, who announced earlier this month that he would step down after five years at the helm of the networking vendor.
Murray was previously the CEO of Waltham, Mass.-based Modus Media International, a supply chain software developer that was sold in 2004 to CMGI Inc. His appointment at 3Com is effective immediately. Like Claflin, he will serve as the company's president and hold a seat on 3Com's board. He will also be the chairman of 3Com's Chinese joint venture with Huawei Technologies Co. Ltd.
Murray takes over a company looking to staunch a flood of red ink. 3Com has restructured operations and trimmed its workforce in hopes of reaching a financial break-even point by early 2007.
3Com, based in Marlborough, Mass., reported a $195.7 million loss on revenue of $651.2 million in its most recent fiscal year.
Murray hailed 3Com's core networking products, its TippingPoint security division and its Huawei joint venture as assets that will be key to his turnaround efforts. "3Com has a sound strategy and incredible assets," he said in a statement. "I am confident that my global operations background and experience in turning around international technology companies will help 3Com capitalize on its current momentum."
Zeus Kerravala, an analyst at Yankee Group Inc. in Boston, described Murray as an unknown who has worked at two companies not involved in making or selling networking gear.
"A person who has been in supply chain management is a little bit out of the scope of whom you'd think 3Com would hire, but maybe Murray brings in a thought process not historically in networking, and that's probably a good thing for 3Com."
He said 3Com makes good products, but the company has had problems in the sales and marketing of them.

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