Feeds

Palm: revenues up, expectations down

'Deeply disappointing'

Beginner's guide to SSL certificates

Despite a surge in sales, Palm CFO Doug Jeffries predicts that the smartphone maker's immediate future won't be a happy one.

These revelations came today in a conference call with analysts and reporters as Palm announced its third-quarter results for fiscal year 2010. Wall Street immediately spanked the company's stock in after-hours trading, driving it down over 12 per cent.

Compared with the same quarter one year ago, Palm's balance sheet looks almost rosy. At that time, the company endured a $95m net loss on revenues of a mere $90m. This year, net losses totalled just $18.5m on $349.9m in revenues. Revenues, in fact, beat both analysts' expectations and Palm's own projections.

But losses are, after all, losses. CEO Jon Rubinstein candidly told those listening in on the call that issues with his company have been "deeply disappointing to me".

Jeffries had the unenviable task of announcing that next quarter should be a rocky one, with revenues projected to be $150m or less. According to the Wall Street Journal (paid subscription), analysts were expecting fourth-quarter revenues to edge a bit over $300m.

When asked about the roiling speculation that Palm might be a takeover target, Rubenstein dodged the question, giving only the time-honored and prudent comment that the company would entertain any ""reasonable offer".

Palm is in a tough position. Its webOS operating system - especially in its latest incarnation - is attractive and well-featured. The company's Prē and Pixi smartphones, however, have failed to gain traction against the juggernaut that is the Apple iPhone and the steadily increasing competition from phones based on Google's Android OS.

If you're interested in some solid smartphone intellectual property, now might be a good time to give Rubenstein a call. Or, perhaps, you might choose to wait until after what's shaping up to be a challenging fourth fiscal quarter for Palm. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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.