PalmSource Revenues Up Slightly, Loss Narrows

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PalmSource has just reported that its revenues went up a bit during its most recent financial quarter, but not enough to make the company profitable.

The company took in $17.6 million during its quarter that ended May 28, as compared to revenues of $17.3 million for the same period of the prior year.

Net loss for this quarter was $2.9 million, or 23 cents per share. PalmSource’s net loss for the same quarter of last year was $3.4 million, or 34 cents per share.

On a non-GAAP basis, the company’s net loss was $0.6 million, or 5 cents per share. This excludes expenses related to the spin-off of PalmSource from palmOne, as well as the effect of stock-based compensation, amortization of intangible assets, and/or restructuring.

Analysts had been expecting the company to lose 7 cents on a non-GAAP basis, so it did better than expected.

According to PalmSource, its licensees reported shipments of 1.4 million Palm Powered devices during the March-to-May period, of which 78 percent were handhelds, 18 percent were smartphones, and 4 percent were other devices. In the same quarter of the prior fiscal year, Palm OS licensees reported shipments of 1.5 million units, of which 88 percent were handhelds, 10 percent were smartphones, and 2 percent were other devices.

Yearly Results

This was also the end of PalmSource’s fiscal year. At $73.1 million, annual revenues were down. The company took in $73.4 million during the prior fiscal year.

Net loss for the fiscal year was $15.2 million, or $1.40 per share, as compared to a net loss of $21.8 million, or $2.18 per share, for the prior fiscal year.

On a non-GAAP basis, PalmSource had a net income of $1.2 million, or 10 cents per share, during the last 12 months. This is significantly better than the non-GAAP net loss of $11.7 million, or $1.17 per share, for the previous time period.

As of May 28, PalmSource’s cash, cash equivalents, restricted investments, and short-term and long-term investments totaled up to $88.6 million. Cash utilized for operating activities during the most recent financial quarter was $3.1 million.

Future Predictions

PalmSource says it expects to post a non-GAAP loss somewhere between 14 cents per share and break even for the quarter that ends in August. Analysts had predicted the company would post a loss of 6 cents per share during this quarter. The possibility of worse than expected results spooked some investors and PalmSource’s share price dropped in after-hours trading.

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