Feeds

Palm: revenues up, expectations down

'Deeply disappointing'

Security for virtualized datacentres

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. ®

Security for virtualized datacentres

More from The Register

next story
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
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
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
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.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.