Palm profits surpass Street 'spectations

Revenue, profits way up - and that's pre IPO

Palm Computing yesterday showed off its first set of financial results as a public company - though for most of the reported quarter, the third of fiscal 1999, it remained a 3Com subsidiary. For the three months to 25 February, the company made $15.5 million, up from the same period last year's $8.7 million, on revenues up to $272.3 million from $125.9 million. The latest figures represent year-on-year growth of 78 per cent and 116.3 per cent, respectively. That profit figure comes before one-off items are taken into consideration - when they have been Palm's income for the quarter falls to $10.9 million. The exceptional items cover separation costs and the purchase of in-process technology. Even at that level, Palm's profits amount to two cents a share, double the figure Wall Street analysts had been expecting. Next quarter's numbers will be better. The company is anticipating sales in the region of $280-295 million, though it pointed out that component shortages - LCD displays and Flash memory, in particular; apparently these are all being grabbed by cellphone vendors - could impact margin growth. On the positive side, the company now has a $1.17 billion war chest, thanks to the IPO, which took place after Q3 was complete. Palm didn't say how many machines it shipped during the quarter - though it did say it has now shipped over six million devices in total - or how its sales break down between hardware and licensing revenue. ® Related Stories 3Com readies Palm-beating Net access box Apple movie marketeer joins Palm Colour Palm VII due August

Sign up to our Newsletter

Get IT in your inbox daily

Biting the hand that feeds IT © 1998–2017