Palm Reports Q1 FY07 Results

Palm Reports Q1 FY07 Results

September 21, 2006

By: Christopher Meinck

Palm, Inc. today reported revenue of $355.8 million in the first quarter of fiscal year 2007, ended Sept. 1, up 4 percent from the year-ago period.

Palm reported net income of $16.5 million, or 16 cents a share, versus net income of $18.2 million, or 18 cents a share, in last year’s period.
“We executed well on a number of fronts, significantly increasing profits and Treo sell-through,” said Ed Colligan, Palm president and chief executive officer. “The product announcements we made this month put us in an even better position to meet marketplace demands and extend our worldwide reach.”

Palm reported disappointing preliminary forecasts a few weeks back due to lower Treo sales in the retail channel. At that time, the Palm CEO addressed the shortfall by saying, “We will soon address the market dynamics responsible for our first-quarter revenue shortfall with two major new product launches, one that improves our pricing position and both which extend our carrier relationships throughout the global markets.”

In a related news release issued today, the company announced that it has received approval from its board of directors to repurchase up to $250 million worth of Palm shares outstanding.

Highlights of the Quarter

During the first quarter of fiscal year 2007, the company accomplished the following:

  • Announced a relationship with Vodafone Group, Europe’s largest carrier, and many of its European operating companies, to expand Treo sales in Europe as part of Palm’s corporate objective to grow the Treo market presence outside the United States. (Following the quarter’s close, Palm announced the availability of a new Treo 750v smartphone, running on Vodafone’s 3G/UMTS network and using the Windows Mobile 5.0 Pocket PC Phone Edition operating system);
  • Shipped the Treo 700wx to Sprint in the United States, expanding the Treo 700w family of Windows Mobile-based products;
  • Launched BlackBerry Connect for the Treo 650 smartphone with Cingular Wireless in the United States, Vodafone in Australia and Movistar in Spain;
  • Launched the Treo 650 in Peru on the Claro network; and
  • Established a new carrier relationship with the UK carrier 02.

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