Palm Reports Increased Revenue

Palm Reports Increased Revenue

December 20, 2005

By: Christopher Meinck

Palm today reported revenue of $444.6 million in its second quarter of fiscal year 2006, ended Dec. 2, up 18 percent from the year-ago period. They also now own 36% of the converged device market. A number that is sure to increase with the release of Treo 700w.

“Achieving the eighth consecutive quarter of year-over-year double-digit revenue growth and growing our converged device market share to 36 percent in the United States are significant accomplishments,” said Ed Colligan, president and chief executive officer of Palm. “We’ll roll out the Palm Treo 700w smartphone based on Microsoft’s Windows Mobile, and we’ll announce three additional new smartphones during calendar year 2006.

Net income was $260.9 million, or $5.02 per diluted share. Net income reflected the effect of a partial reversal of a deferred tax asset valuation allowance of $226.3 million. This compares to net income for the second quarter of fiscal year 2005 of $24.7 million, or $0.48 per diluted share.

“During the second quarter, we added seven new carriers to expand the geographic reach of our products, and for the first time we began selling Treo smartphones in China,” Colligan said. “We shipped more than 1 million Treo smartphones during the first half of fiscal year 2006, which is just shy of what we shipped in all of fiscal year 2005. With our strong market position, and excellent execution, I have confidence in our long-term growth opportunity.”

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