Pre sales fail to prevent Palm loss

Dylan Bushell-Embling
18 Sep 2009
Daily News

Palm yesterday reported its ninth straight quarterly net loss, but said handset shipments had soared by 134% over the previous quarter.

The smartphone maker said it ended the June-August quarter $2.8 million in the red. Revenue decreased nearly sixfold year-on-year to $68.0 million.

Excluding one-off items it posted a loss of 10 cents a share, beating expectations of a loss of 24 cents.

Strong Pre sales helped Palm ship 823,000 smartphones during the quarter, a 134% quarter-on-quarter improvement but a decline of 30% year-on-year.

Palm CEO Jon Rubinstein said the company was making significant progress in its transformation drive, and had a cash-flow of around $211.8 million at the end of the quarter.

The company said it expects non-GAAP revenues of between $240-270 million this quarter, and $1.6-1.8 billion for FY10.

The mixed results had a volatile effect on Palm shares as investors weighed the news, Marketwatchreported. Palm shares on the Nasdaq are currently selling for $14.09 in after-hours trading, 2.4% lower than the closing price.

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