Michael Kanellos and Wylie Wong of CNET's News.com report that 3Com, plagued by a larger than expected fourth quarter loss, has decided to discontinue its two Internet appliance products — the Audrey table-top Internet box, and the Kerbango Internet radio. The former took advantage of an embedded QNX operating system, while the latter is a well known design win for MontaVista Software's Hard Hat Linux.

Update: An unnamed source within 3Com acknowledged that multiple possibilities for continuing the Kerbango product line outside of 3Com are being considered, and that the first production build of Kerbango Internet Radios have already been produced and are currently being warehoused.

Kanellos and Wong write . . .

“[3COM will] likely disband its entire Internet appliance division created last year, although it will continue to make home-networking products. Audrey and Kerbango were the only two products to emerge from the appliance division, a spokeswoman said Wednesday, and no further products are planned. 3Com will also discontinue its Web cam, which comes out of a separate division . . .”

” 'While we believe in the potential of the category, it's clear that it will take longer to develop than originally planned and likely to generate losses for the foreseeable future,' 3Com Chief Executive Bruce Claflin said in a conference call.”

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