Palm Announces Very Profitable Quarter and Year

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Palm, Inc. has released the results of its most recent financial quarter, and it has also just finished up its financial year. Mostly due to strong sales of Treo smartphones, the company was very profitable during both periods.

During the quarter that ended early this month, Palm had revenues of $403.1 million, leading to a profit of $27.2 million, or 25 cents per share.

That compares to a profit of $17.7 million, or 17 cents per share during the same quarter last year.

During the last fiscal year, the company’s revenue was $1.6 billion, up 24 percent from the revenue in the previous fiscal year.

Palm’s profit during this twelve-month period was $336.2 million, or $3.19 per share, up dramatically from its income of $66.4 million, or 65 cents per share, in the previous fiscal year.

All Hail the Treo

Palm executives laid much of the credit for all these profits on its Treo line of smartphones.

“Treo smartphone sales surpassed an important milestone — $1 billion in revenue for the fiscal year,” said Ed Colligan, Palm president and chief executive officer. “Our product engine is firing on all cylinders as evidenced by our recent introductions of both the Treo 700w and the Treo 700p, each of which offers a different operating system, 3G radios and robust application suites, and we delivered these products to multiple carriers simultaneously.”

Don’t Write Off PDAs

That doesn’t mean, however, that smartphones have completely taken over Palm’s business. During the last twelve months, this company shipped more handhelds than it did smartphones.

Palm shipped approximately 4.7 million devices during this most recent fiscal year: about 2.3 million Treos but roughly 2.5 million handhelds.

Still, there’s no doubt that smartphones are an ever-increasing part of its business. During its most recent financial quarter, Palm shipped about 623,000 smartphones and 495,000 handheld computers.

To date, Palm has shipped a total of almost 36 million devices.

Future Guidance

During its next fiscal quarter, Palm executives believe their company’s revenue will be between $380 million and $385 million, and earnings to be in the range of 13 cents to 14 cents per share. 

In the coming twelve months, they expect revenue to go up 20 to 25 percent.

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