3Com Corporation has reported much stronger than expected numbers on its sales in China for the last quarter. In addition to its great performance for the previous quarter, 3Com indicated that it is forecasting even better sales for this quarter, which sent its per share price rocketing up twelve percent.

3Com reported that its revenue rose seven percent to $342.7 million, which exceeded 3Com's own forecast along with a strong showing from China's largest mobile phone equipment manufacturer, Huawei Technologies Co HWT.UL, with which 3Com is affiliated.

"Our strong revenue performance in the quarter was largely due to continued growth in our China segment," said 3Com Chief Executive Bob Mao to analysts on a conference call. "In today's tight economy, we are seeing clear signs of a fly to value, as customers look to get more for their networking dollars," he said, while indicating that 3Com was also on target with its cost-cutting plans.

3Com’s partnership with Huawei in China accounted for nearly half of 3Com's business. In the first quarter, 3Com announced that it had won a large contract with the Bank of China, which is using its high-end core routers and switches in its data center.

Its focus will continue to be on repeating its successful numbers in other markets, according to 3Com, and is upbeat that it can continue its growth, despite the recent slowdown in the global economy.