Palm’s Quarterly Profits Way Down, Smartphone Shipments Way Up

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Palm, Inc. has just reported that its profits during its most recent financial quarter had dropped 44% when compared to the same period of last year. This despite the company shipping a record number of Treo smartphones.

The company earned 15.4 million, or 15 cents per share, during the quarter. It had profits of $27.2 million, or 25 cents per share, during the same quarter of 2006.

The company’s revenue was $401.3 million, a slight drop year over year, but Palm’s expenses were up across the board.

Despite the drops, Palm quarterly results were still better than analysts had been expecting.

Lots More Treos

Palm’s smartphone sell-through for the quarter reached a company record high, totaling 750,000 units, up 43% year over year.

Smartphone revenue was $344.2 million, up 14% from the year-ago period.

Yearly Results

Palm has also just ended its financial year. Net income for this period was $56.4 million, or 54 cents per share, on revenue of $1.56 billion.

The companies net income during the previous fiscal year was much higher — $336.2 million, or $3.19 per share — but this included $219.5 million that came as a result of the partial reversal of a valuation allowance against deferred tax assets.

Its yearly revenue dropped by 1% when compared to the previous period.

Palm also set a company record for smartphone sell-through for the full year, totaling 2.7 million units, up 34% year over year. Smartphone revenue was $1.25 billion, up 15% from the prior year.

Not Predicting a Rosy Quarter

Palm also released today its predictions for its current financial quarter. The company is expecting its revenue to be between $355 million and $365 million, which will lead to a loss of 1 cent per share, or possibly a profit of the same amount.

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