Results were not good. Palm now even cheaper
AP
Palm Swings to Fiscal 2Q Loss
Tuesday December 18, 4:42 pm ET
Palm Swings to Fiscal 2nd-Quarter Loss As Costs Grow, Revenue Declines; Shares Fall
SUNNYVALE, Calif. (AP) -- Smart phone maker Palm Inc. said Tuesday it swung to a loss in its fiscal second quarter as revenue declined and expenses rose.
For the quarter ended Nov. 30, Palm reported a loss of $9.6 million, or 9 cents per share, compared with a profit of $12.8 million, or 12 cents per share, in the year-ago quarter. On an adjusted basis, the company reported a loss of $7.8 million, or 7 cents per share, in the latest quarter.
Palm's revenue for the period declined to $349.6 million from $392.9 million.
Analysts polled by Thomson Financial expected an adjusted loss of 8 cents per share on sales of $350.3 million.
Palm said its smart phone revenue totaled $282.4 million in the period, and smart phone sell-through rose 11 percent year-over-year to 686,000 units.
Palm's operating expenses climbed to $146.4 million from $122.1 million.
For its third quarter, Palm predicted a loss of between 31 cents and 33 cents on revenue of between $310 million and $320 million. The company forecast an adjusted quarterly loss of 14 cents to 16 cents per share.
Analysts predict a third-quarter loss of 4 cents per share.
In after-hours activity, shares fell 39 cents, or 6.6 percent, to $5.54. Before the second-quarter results were released, the stock rose 28 cents, or 5 percent, to end regular trading at $5.93. The stock has traded in a 52-week range of $5.33 to $10.34 |
