PalmOne makes Q1 loss

Mergers, demergers muddy waters

PalmOne's first quarter as a entirely separate entity from PalmSource and as the owner of Handspring yielded sales of $271.2 million, up five per cent on the same Q last year. It produced a net loss of $4.1m

Of course, PalmOne's numbers are muddied by the loss of PalmSource and the arrival of Handspring. Income from its own business and Handspring's part-quarter contribution totalled $2.6 million (seven cents a share) - well down on the equivalent figure for Q3 2003: $9.5 million (33 cents a share).

PalmSource's contribution knocks the income into a loss, of $4.1 million (11 cents a share), compared to a year-ago equivalent income of $3.5 million (12 cents a share).

In any case, the quarter ended on 28 November, missing out a good portion of the Christmas sales period, so next quarter's figures, free of the effects of the divestment of PalmSource and the incorporation of Handspring, will give a better picture of the company's fortunes going forward.

PalmOne said that the quarter's gross margins remained stable, staying at 27.1 per cent, while its average selling price rose from $160 to $172. The company sold 1.4 million devices during the quarter, which ended with it holding $218.2 million in the bank. ®

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