Feeds

Palm feels the heat in Q1

No new PDAs likely - Colligan

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

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
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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 Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?