Palm, PSRC report quarterly financials
Both of the Palm companies, Palm Inc. and PalmSource, issued their quarterly financial reports on Thursday.
Palm fell short of Wall Street expectations despite a surge in Treo sales. The company earned $18.2 million, or 35 cents per share, a 7% decline in profits from the prior quarter. Palm blamed the shortfall on poor sales and increased costs.
Sales of the Treo 650 rose to approximately 470,000, making up about 44% of total unit sales, and 67% of all revenue. However, overall sales stayed flat, meaning that Palm’s other models showed a significant decrease.
Adding to the bad news, Palm expects to fall short of analyst expectations in the upcoming quarter as well, possibly by as much as 45%. Stock in Palm was down 16% in after-hours trading following the announcement.
Palm Inc. should look at the bright side, though: they’re not PalmSource. The OS maker saw their net losses widen to $2 million dollars, or 12 cents per share, compared to a mere $165,000, or 1 cent per share, in the same quarter a year ago. On top of that, shipments of PalmOS based devices declined from 1.4 million a year ago to 1.2 million in the last quarter.
Palm sued over defective Treos
Palm Inc. is the target of a lawsuit over hardware and software defects in their Treo 600 and 650 smartphones. The suit alleges that Palm was aware of a high rate of defects among their Treo smartphones, and did nothing to correct the issues that were causing loss of time and data to Treo users.
Assuming that this ever actually results in anything, it will probably turn out to be a $25 rebate for owners of defective Treos, or something thereabout. Usually, in class action suits, the side with the money wins, unless the plaintiff has dead bodies as evidence.
Palm outbid in PSRC buyout
Palm news everywhere, today. According to statements made by Palm Inc. CEO Ed Colligan in an article by Business Week, prior to Japanese software company Access committing to the acquisition of PalmSource, Palm Inc attempted to buyout their sibling company. However, the entry of unnamed competitors drove up the asking price, resulting in Palm Inc.’s withdrawl and PalmSource being bought out by Access.
Dell offers pre-orders for X50 upgrade
Dell is now offering X50 users the option to pre-order their Windows Mobile 5 upgrade CD for delivery in late October. Users who bought an X50 or X50v since June will be shipped the upgrade for free–all others will have to order it for $39.