Palm Reports Higher Quarterly Revenues but Lower Profits

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Palm, Inc. has just released the results of its most recent financial quarter, which ended March 2.

During this period, the company had $410.5 million in revenue, up about 5% from the $388.5 million it took in during the same quarter a year ago.

However, this did not lead to higher profits. Net income in the fiscal quarter was $11.8 million, or 11 cents per diluted share. This compares to its net income for the same quarter of last year was $29.9 million, or 28 cents per diluted share.

Still, the very high profits in 2006 were the result of a favorable tax re-assesment, not the regular operations of the company.

Treos Doing Well

Shipments of Palm’s Treo smartphones reached record high last quarter, for a total of 738,000 units, up 30% year over year.

Of the company’s $410.5 million in total revenue, $354 million came from Treo sales, up 23% from the same quarter of the previous year.

During this period, 86% of Palm’s total shipments were smartphones and 14% were traditional handhelds. Shipments of handhelds have dropped considerably over the past year.

"Treo smartphone sell-through and revenue reached record levels, and Palm products were available to smartphone customers through seven of the top 10 carriers in the world," said Ed Colligan, Palm president and CEO.

Looking Forward

During its current financial quarter, Palm executives expect their companies’ revenue to be in the range of $400 million to $410 million, leading to earnings per diluted share between 10 cents and 13 cents.

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