2001, Claflin became chief executive officer, replacing Éric Benhamou, CEO from 1990 to 2000. He was criticized for the costly diversification in the mobile handheld computer market. At this point, the company's main line of business, selling addon network interface cards ("NICs"), was also shrinking rapidly, mainly because many new computers had NICs built in. The company started slashing or selling divisions and going through numerous rounds of layoffs. The company went from employing more than 12,000 employees to fewer than 2,000. In May 2003, the company moved its Silicon Valley Santa Clara headquarters to Marlborough, Massachusetts. It also formed a venture called H3C with Huawei, whereby 3Com would sell and rebrand products under the joint venture. In 2003, 3Com sold its CommWorks Corporation subsidiary to UTStarcom, Inc. CommWorks was based in Rolling Meadows, Illinois, and developed wireline telecommunications and wireless infrastructure technologies. In January 2006, Claflin announced he would be leaving the company. In January 2006, R Scott Murray became CEO of 3Com and chairman of H3C Technology in China, the joint venture with Huawei Technologies. Murray voluntarily resigned from the company in August 2006 over his concerns about the questionable business ethics of Huawei and potential cyber security risks posed by Huawei. Edgar Masri returned to 3Com to head as president and CEO following Murray's departure. In September 2007, Bain Capital agreed to buy the company for $2.2 billion, with minority equity financing from Huawei Technologies. However, the deal met with U.S. government regulatory opposition and it fell through early in 2008, following concerns over Huawei's risk of conducting cyber security threats against the United States Government and its allies, Huawei's former dealings in Iran, and Huawei being operated by a former engineer in China's People's Liberation Army. Edgar Masri left the company in April 2008, partially as a result of the failed Bain transaction. In April 2008, Robert Mao was named chief executive, and Ron Sege president and chief operating officer. In fiscal year 2008 ended May 30, 2008, 3Com had annual revenue of $1.3 billion and more than 6,000 employees in over 40 countries. In September 2008, 3Com reported financial results for its fiscal 2009 first quarter, which ended August 29, 2008. Revenue in the quarter was $342.7 million compared to revenue of $319.4 million in the corresponding period in fiscal 2008, a 7 percent increase. Net income in the quarter was $79.8 million, compared with