palmOne has just reported that it earned a small profit during its most recent financial quarter. This marks the fourth quarter in a row that this company has turned a profit.
It had revenue of $285.3 million for the quarter, up approximately 18 percent from the revenue reported during the comparable quarter a year ago.
Net income was $4.4 million, or 9 cents per diluted share, measured on a Generally Accepted Accounting Principles, or GAAP, basis.
Profit would have been higher, but palmOne had to take a considerable charge to pay for the severance package of its departing CEO.
Still, it is far better than the same quarter of 2004, during which the company lost $9.3 million, or 20 cents a share.
Non-GAAP net income in the quarter totaled $10.6 million. This excludes the effects of the CEO’s severance package and other non-reoccurring charges.
palmOne shipped approximately 938,000 handhelds and smartphones last quarter. Cumulative shipments to date total roughly 29.9 million units.
“We executed well and delivered strong revenue growth and gross margin during the quarter. Treo smartphone sell-through rose by almost 50 percent, and our share of the handheld-computer market expanded around the world,” said Ed Colligan, palmOne president and interim chief executive officer. “Going forward, we’re committed to investing in our product-development engine and software-application differentiation. We’ll also work to accelerate the pace at which we bring our smartphones to new carriers and higher-speed networks.”
Unfortunately, palmOne executives had some bad news for investors. They warned that some products they had hoped would ship early in the current fiscal quarter will actually ship later in this quarter or might even not be available until this summer.
In a conference call, executives blamed the delays on the often slow process of getting smartphones certified for use on the networks of wireless carriers.
In addition, palmOne has been unable to make enough of its Treo 650 to meet demand, which has hurt its bottom line.
Although revenue for the current quarter is expected to be higher than it was during the same quarter last year, it will be lower than the company had previously hoped.