Palm posts mixed results

Palm posts mixed results

Palm’s financial results sent a mixed message for investors this week.

The struggling Californian based firm, which recently launched the much vaunted Palm Pre, announced unadjusted losses of $168m for the last three months. Revenues are also down 82% on the same period last year to $68m.

However once one-time costs, including the cost of launching the Palm Pre in the US and Canada, are taken into consideration Palm said its adjusted losses stand at just $13.6m on revenues of $360m - ahead of Wall Street expectations.

Handset sales, including the touchscreen Pre, which Palm is hoping will boost its lagging fortunes, also performed better than analysts predicted. The company said it sold 810,000 handsets in the last quarter, the majority of which it said were the Pre.

The results sent a mixed message to the market. Most analysts had expected losses of $35m from revenues of $297m and around 500,000 units sold.

Palm chief executive Jon Rubinstein, said the firm ‘was making significant progress with Palm’s transformation.’ He added that the Palm planned to launch ‘more great WebOS products with more carriers, and turning our sights toward growth.’

However analysts say the sale of Pre is a central pillar in Palm’s comeback, noting that the company had not released precise figures on how many had been sold.

The company - which has $211m in available cash - said it was planning a common stock offering of 16 million shares. That would include a $35m buy from private equity group Elevation Partners, which invested $325m in 2007.

Written by Mobile Today
Mobile Today

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