Friday, 30 June 2006

Palm Q4 Profit Up; Sets Q1 Outlook Below Expectation

Handheld computer and phone maker Palm Inc. has reported fourth quarter net income of USD 27.2 million, or 25 cents a share, compared with net income of USD 17.7 million, or 17 cents a share for the year-ago quarter. Excluding special items, the profit was 29 cents a share. The company said the rise was mainly helped by strong sales of its Treo phone.

"Treo smartphone sales surpassed an important milestone – USD 1 billion in revenue for the fiscal year," said Ed Colligan, Palm president and chief executive officer.

Revenue in the quarter ended June 2, totaled USD 403.1 million, up 20 percent from the year-ago quarter.

For the current fiscal first quarter, Palm expects to earn between 18 cents and 19 cents a share, excluding one-time items. That is below analysts' average forecast of 22 cents a share, according to Reuters Estimates. Including items, Palm expects quarterly earnings of 13 cents to 14 cents a share.

Revenue for the quarter is expected to be between USD 380 million and USD 385 million, below the current Wall Street expectation of USD 412.4 million.