Feeds

Palm: revenues up, expectations down

'Deeply disappointing'

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.