3Com Corp (COMS.O), hit by a sharp shortfall in revenue from key distributor Huawei Technologies HWT.UL in fiscal 2010, is targeting significant revenue growth in 2011.

The network equipment maker on Thursday forecast a 56 percent to 78 percent decline in sales from Huawei in fiscal 2010. Huawei contributed 15 percent of 3Com's fourth-quarter revenue.

"This is really one year where the combination of Huawei decline coupled with what's started out to be a very difficult environment makes 2010 much more of a transition year for the company," Chief Financial Officer Jay Zager said in an interview with Reuters.

3Com does not expect to completely offset the twin blows in 2010.

"Our expectation is that when we come out of 2010 and into 2011, we will be in pretty good shape and poised to show some significant growth next year and beyond," Zager said.

3Com also faces an uphill task in China, where it has a 33 percent to 35 percent share of the enterprise networking market and is locked in a close fight with industry heavyweight Cisco Systems Inc (CSCO.O).

"The bad news is it will be very difficult for us to substantially increase market share above where we are today," Zager said of the Chinese market.

In the year ended May 29, which 3Com calls fiscal year 2009, revenue from Huawei came in at $229 million. For fiscal 2010, the company expects $50 million to $100 million.

On the impact of the economy on 3Com, Zager said: "It's hard to quantify, but the answer is, 'quite a bit'."

3Com has been seeing particular weakness in Europe and Mexico, one of its two biggest markets in Latin America, Zager said.

The company is in the midst of a strategic shift and has been making an aggressive push into the large enterprise market outside China with its H3C brand, taking on Cisco.

3Com has been steadily winning H3C contracts.

"We're seeing a dramatic increase in our pipeline of activity," Zager said.

The company expects its beyond-China strategy to lower the region's revenue share under 50 percent in about a year's time. China currently contributes 55 percent of its revenue.

3Com shares have lost 18 percent of their value since reporting fourth-quarter results on Thursday. The stock has gained 75 percent in the last six months. It closed at $3.85 Friday on Nasdaq.