PalmSource Releases First Financial Results as an Independent Company

PalmSource has announced the results of its very first financial quarter as an independent company. PalmSource's revenues increased during the quarter, but it wasn't enough to make the company profitable.

It reported revenues of $16.8 million, an increase of 13% over the $14.8 million in revenue reported during the same quarter last year, when it was still a part of Palm, Inc. License and royalty revenues increased by 14% to $15.5 million, while the number of units shipped decreased by 10% to 1.3 million.

Based on generally accepted accounting principles (GAAP), PalmSource's net loss for last quarter was $9.1 million or 89 cents per share. This compares to a GAAP net loss for the same quarter of 2002 of $8.3 million or 83 cents per share.

On a non-GAAP basis that excludes the effect of stock-based compensation, amortization of intangible assets, restructuring, and separation (related to the spin out of PalmSource from palmOne), net loss for the company's most recent financial quarter was $300,000, or 3 cents per share. This compares to a non-GAAP net loss for the same quarter last year of $6.0 million or $60 cents per share.

As of November 28, the end of PalmSource's most recent financial quarter, it had cash, cash equivalents and restricted investments of $35.7 million.

The company expected revenues for the current quarter to be about $21 million. Financial results on a GAAP basis are expected in the range of a net loss of $2 million to breakeven; and on a non-GAAP basis, net income in the range of $1 million to $3 million.

At the end of October, PalmSource was split off from Palm to become an independent company, as the same time Palm merged with Handspring to become PalmOne. PalmSource is a software company responsible for developing and licencing the Palm OS.

Related Links

• palmOne Reports First Quarterly Financial Results Since Merger
• Palm and Handspring Merge, PalmSource Goes Independent