Feeds

Palm feels the heat in Q1

No new PDAs likely - Colligan

Boost IT visibility and business value

Palm reported revenue of $355.8m for the quarter ending 1 September, with a slim net income of $16.5m. Measured on a non-GAAP basis, the profit was $21.5m.

Revenue rose four per cent from a year ago, but was down 12 per cent sequentially. Palm had earlier warned that revenue would be lower than it originally expected, in the $380m to $385m range.

Palm sold 569,000 Treos and 490,000 PDAs in the quarter, generating $269m and $87m worth of revenue respectively.

CEO Ed Colligan blamed the sales shortfall on greater competition in the retail channel. The US business has been a two horse race until this summer, with RIM and Palm taking the lion's share; Motorola's Q and Nokia's E62 (a rebadged E61 without the Wi-Fi) have changed that.

Colligan said Palm would be introducing a low cost model, priced below $299, for "the very new future". A device codenamed Nitro appeared on Cingular documents earlier this year, Engadget reported.

Adding to the belief that Palm may have released its last ever PDA, Colligan dampened expectations for new handheld models for the Christmas season.

Palm said it expects revenue of between $430m and $450m for Q2 2006.

In an effort to bolster its share price, the company also announced that it's spending almost half of its cash hoard buying back stock. Palm will spend $250m on the buyback program. It ended Q4 2005 with $527.9m in cash. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.