Feeds

Palm scrambles out of red in Q2

Better running

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.