Palm Sold 810,000 Smartphones Last Quarter

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Palm, Inc. has partially answered one of the mysteries of the smartphone market: how many Palm Pre units it has sold. The company has just reported that during it’s most recent financial quarter — the first since the launch of the Pre — it sold 810,000 smartphones.

This figure includes all Palm’s phones, like the Centro and Treo Pro, but the Pre is likely the lion’s share. Analysts have predicted that Palm has sold around 500,000 Pre units, and today’s announcement shows that this figure is probably not far off.

Its smartphone sales were up 76% from the previous quarter, but down 21% year-over-year.

Profit? Yes and No
Palm took in  $360.7 million last quarter, but has recent begun following the GAAP accounting rule that requires it to not recognize this immediately, but instead defers this revenue over the product’s estimated life.

If it wasn’t following this rule, the company would have made a profit of $100.6 million, but with the GAAP rules it had revenue of just $68.0 million. and a loss of $2.8 million,

“We’re making significant progress with Palm’s transformation, and our culture of innovation is stronger than ever. We’re launching more great Palm webOS products with more carriers, and turning our sights toward growth,” said Jon Rubinstein, chairman and chief executive officer.

Selling More Stock
In a related story, Palm also announced today that it intends to offer approximately 16 million shares of common stock. The company plans to use the proceeds for working capital and general corporate purposes.

Elevation Partners, who already owns a sizable chunk of Palm, has indicated its intention to buy $35 million of Palm shares in the offering, at the public offering price.

Source: Palm



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