palmOne has just reported that its most recent financial quarter was a profitable one. Its revenue was up 23 percent from the same quarter a year ago.
The company earned $13.3 million, or 27 cents per share, during the quarter, which ended May 28.
On a non-GAAP basis, the company’s net income totaled $15.9 million, or 32 cents per share. This is much higher than analysts had expected; their prediction for this quarter was 13 cents per share. This figure excludes the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges.
Revenue for this quarter was $267.3 million, while it was just $217.1 million during the same three months of 2003, and up 10 percent from the previous quarter. This was the the fourth consecutive quarter of year-over-year growth.
palmOne says the sales of handhelds accounted for 72 percent of these revenues, while smartphone sales made up the rest. It expects revenues from these two categories to become roughly equal over the next twelve months. It shipped 151,000 Treo 600s during its most recent quarter.
Fiscal Year Results
This was also the end the palmOne’s financial year. Revenue for the last twelve months was $949.7 million, up 13 percent from the $837.6 million reported in the previous fiscal year 2003.
Loss from continuing operations for fiscal year 2004 was $10.2 million, or 26 cents per share, compared with a loss from continuing operations of $417.9 million, or $14.38 per share, for the company’s previous fiscal year.
On a non-GAAP basis, palmOne had a profit of $8.0 million, or 19 cents per share, during this time period. That compares with the previous fiscal year non-GAAP loss of $55.6 million, or $1.91 per share.
palmOne shipped approximately 1.1 million Zire, Tungsten, and Treo devices during its most recent fiscal quarter, and approximately 4.1 million devices during the last twelve months — bringing the total number of devices shipped to-date by palmOne to more than 26.4 million.
“We achieved profitability for the quarter, and demand remains strong for our handheld and smartphone products,” said Todd Bradley, palmOne’s CEO. “We ended fiscal year 2004 with very good results across virtually every key financial metric.”
The company predicts it will earn 12 cents a share during the current quarter, and have revenues between $250 million and $260 million.
Reaction among investors to this news was quite positive. Shares of palmOne closed yesterday at $21.46. In after-hours, the share price climbed to $27.10.