palmOne Reports Third Profitable Quarter in a Row

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palmOne has reported that its most recent financial quarter was its third profitable one in a row.

Its net income was $24.7 million, or 48 cents per diluted share.

Revenue during the quarter, which ended November 26, was $376.2 million. This is up approximately 39 percent from the revenue reported during the same quarter a year ago.

The company generated $23.7 million in cash from operations in the quarter.

palmOne logo palmOne shipped approximately 1.6 million Zire, Tungsten, and Treo models during its its most recent quarter. Unit shipments to date total about 29 million.

“Our strategy is working, and this quarter’s excellent growth in revenue and a more than tenfold increase in operating income from the year-ago quarter demonstrate we executed well,” said Todd Bradley, palmOne chief executive officer. “Our fall products raised the bar for competitors and earned widespread acclaim. And we grew our handheld-computer market share domestically and abroad.”

What About this Quarter?

In a conference call late yesterday, palmOne executives said that they expected their company to earn 21 cents a share during the current quarter, which ends in February. However, analysts had been expecting the company to earn 34 cents a share.

In addition, palmOne executives said revenue for the current quarter would only be about $280 million, which is below the $318 million in revenue analysts had been predicting.

With the Treo 650 now on the market, analysts were expecting a surge in revenues from palmOne, which apparently isn’t going to happen. This may be related to the problems the company is having getting this smartphone deployed on GSM/GPRS carriers. Currently, the Treo 650 is available from only one CDMA carrier, Sprint.

Not surprisingly, the news that this quarter’s earnings will be below expectations has caused the company’s share price to drop. Currently, it’s down over $7.50 from yesterday’s close, or about 17 percent.

Still, the company’s share price has gone up considerably in the last few months. All today’s drop has done is reverse the company’s gains since mid-November.

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