palmOne has just reported a significant profit for its most recent financial quarter. The company also saw its revenues increase substantially.
The company's revenue during the financial quarter that ended August 27 was $273.1 million, which is up 62 percent from the $168.6 million reported during the comparable quarter a year ago. This is the fifth consecutive quarter of year-over-year revenue growth.
Net income was $19.6 million, or 38 cents per share. During the same quarter of last year, it lost $16.9 million.
On a non-GAAP basis, net income totaled $21.9 million, or 43 cents per share. These figures exclude the effects of amortization of intangible assets and deferred stock-based compensation.
palmOne did far, far better during this quarter than analysts had expected. They had predicted a profit of 16 cents per share. The company even outdid its own predictions, which had been for a profit of 12 cents per share.
It isn't just revenue and profits that were up. Unit sales of palmOne products during the quarter were up 10 percent vs. the year-ago period. It shipped approximately 981,000 handhelds and smartphones during the quarter -- bringing the total number shipped to-date to approximately 27.4 million.
"Our handheld and smartphone solutions performed very well in the marketplace. Outstanding products plus operational excellence resulted in strong growth and profitability," said Todd Bradley, palmOne's CEO. "Excitement is mounting in our category, and we're confident that our innovative products coupled with our excellent distribution through retail and carrier channels will help us maintain and extend our market leadership."
The announcement of these results came after the NASDAQ close. In after hours trading, palmOne shares initially rose from $37.28 to $43.08, an increase of over 15 percent.
However, in a conference call after this announcement, company executives predicted that profits from the current quarter would be below analysts' expectations, which caused share prices to drop considerably.
The executives said they expect weak sales of handhelds to offset increased demand for its Treo smartphones during this quarter.
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