3Com Corp. (NASDAQ: COMS) shares are up around 12% so far today after the network equipment maker raised its first-quarter sales and profit forecasts due to gains in China. Not only did 3Com raised guidance, it also raised it above analyst estimates.

3Com, which makes routers, switches and cables for telephone companies, has more than quadrupled sales in China since buying out Huawei's stake in their joint venture H3C last year. China now accounts for almost half the sales at 3Com.

Some may be concerned due to recent reports of China's slower economic growth. But two things are worth mentioning here. First, China's slower GDP growth is still a whopping 9%, down from 11%. And second, telecom infrastructure will likely continue at the same pace.

It isn't surprising, then, that 3Com has raised guidance for both sales and earnings. Specifically, 3Com expects sales in China to be 10% higher than in the previous quarter on stronger sales to Huawei.

Late last year, I wrote a piece for Bloggingstocks.com on the Alcatel-Lucent merger. Basically, the company's CEO, Patricia Russo, said she would not learn French (even though the headquarters is in Paris). I thought this was a warning sign because it could be a hindrance to managing cultural issues.

Well, it looks like Russo can't speak Wall Street, either.

Today, Alcatel-Lucent announced that it will miss its fiscal fourth quarter. The company expects to break-even (which compares to net income of $739 million in the same period a year ago) and revenues should be down about 16% to $5.72 billion.

Why the meltdown? Well, it could be that customers are holding-off because of the merger.

There is also intense competition, especially from China (such as Huawei). Another big problem is the consolidation of major telecom carriers.

On the news, Wall Street is dumping the stock. The current stock price is down 8% to $13.04.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.