Feeds

Palm scrambles out of red in Q2

Better running

  • alert
  • submit to reddit

Intelligent flash storage arrays

Palm Inc gave itself a corporate pat on the back yesterday as it clawed its way back into profit in its second quarter and turned in sales well ahead of forecasts.

However, the firm tempered its good news by predicting it would still make an operating loss in the third quarter and hinting at further job cuts.

The Milpitas, California-based handheld developer turned in sales of $264.9m for the quarter ending November 29, down 8.8% on the year, but better than the $251.5m Wall Street had been expecting. Operating profits were $389,000 compared to the $37.5m operating loss it made last year. However, interest and other income helped boost its net profit to $3.5m compared to a $25.2m loss last year. Once costs were stripped out the company made proforma income of $0.19 per share. Wall Street had been expecting a loss of $0.15 per share.

Palm staged a major product launch in the second quarter, debuting its Tungsten and Zire product lines. However, chairman Eric Benhamou said the biggest factor in its performance was "improved execution."

The firm expects both its Solutions business and its Palmsource business to be profitable over the course of the full year.

CFO Judy Bruner said sales had been boosted by the launch of the new products and the effect of seasonality. She said the company was continuing to examine its operations, and expected to take a restructuring charge in the second half. She added that it expected to turn in a modest proforma operating loss in the third quarter. The company also expects a small loss under GAAP.

Asked if the expected further restructuring would include job losses, Bruner said the firm was always examining its staffing levels to make sure the different parts of the business are optimized.

For the year to date, sales were down 13.4% to $437.2m. Palm's net loss so far stands at $255.2m, compared to a loss of $57.6m last year.

© ComputerWire

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.