As Palm works to release the Palm Prelater this year, revenue from its current products has dropped dramatically. The company warned investors about this a few weeks ago.
During its most recent financial quarter, it took in $77.5 million from smartphones, down 72% from the year-ago period. The company sold 482,000phones during this period, down 42% year over year. Its total revenue was $90.6 million.
Net loss for the quarter was $98.0 million, or $0.89 per share.
“We’re proceeding through a challenging transitional period, however our current results shouldn’t overshadow the tremendous progress we’ve made against our strategic goals. We’re poised to usher in a new era at Palm,” said Ed Colligan, Palm president and CEO.
Colligan was, of course, referring to the eagerly-awaited release of the Palm Pre, its next device.
Keeping Itself Afloat
Palm spent $92.1 million in cash keeping itself in business last quarter, leaving it with $219.4 million in reserve at the end of the quarter.
There can be no question of Palm not being in business long enough to launch the Pre. The company recently pulled in $103.6 million in a stock sale, and Elevation Partners, the private equity firm that is by far the largest single investor in this company, has shown itself willing to invest additional capital as needed.