Palm Posts Q1 Loss

Palm announced earnings today, posting a quarterly loss for Q1. The loss was a result of intensified competition
in the mobile smartphone market from Apple’s iPhone and others.

Total revenue in the first quarter of fiscal year 2008, ended Aug. 31, was $360.8 million. Smartphone sell-through for the quarter was 689,000 units, up 21 percent year over year. Smartphone revenue was $302.2 million, up 12 percent from the year-ago period.

Palm, in its first financial report since it sold a 25 percent stake of the company to private equity firm Elevation Partners, posted a fiscal first quarter net loss of $841,000, or 1 cent per share, from a profit of $16.5 million, or 16 cents per share, in the year-ago period.

"The launch of our Palm Treo 500v with Vodafone and the Palm Centro with Sprint in September demonstrate our commitment to delivering competitive, high-quality solutions and expanding our reach to a broader market and range of customers," said Ed Colligan, Palm president and chief executive officer. "As we move toward completing the recapitalization transaction with Elevation Partners, we are excited to strengthen our ability to accelerate Palm’s growth in the future."

Speak Your Mind