Business

Palm Q4 profits, revenues double

Handheld maker's first quarter as public company

If only 3Com had held on to Palm for few more quarters. Yesterday, after the comms giant announced a major downturn in sales and a $340 million operating loss, its former subsidiary reported three-month profits that more than doubled quarter on quarter, and a year-on-year doubling of revenues.

For the three months to 2 June - Palm's fourth quarter - the company's net income hit $16.9 million (three cents a share), up just under 149 per cent from the previous quarter's $6.8 million (one cent a share). According to First Call, Wall Street had been expecting profits static at one cent a share.

Q4's income figure ignores IPO related costs. Take those into account and Palm's profit drops to a still healthy $12.4 million.

Palm posted Q4 revenues of $350.2 million, up 101 per cent from the $174.3 million it recorded for the same period last year, and up 29 per cent on the previous quarter's $272.3 million.

For the full year, revenues were $1.058 billion, an increase of 88 per cent over 1999's revenues of $563.5 million.

During the quarter, Palm shipped over 1.1 million devices. To date, it has shipped over 7.1 million units, the company said. ®

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