Palm Announces Q2 FY2010 Results

Sunnyvale-based mobile phone maker Palm announced on December 17 its financial results for the second quarter of the financial year 2010, which ended on November 27, 2009. According to the company, its total revenues for the time frame were of $78.1 million, while gross profit was of $5.5 million. At the same time, Palm also announced gross margin of 7.0 percent. However, the company's non-GAAP Adjusted Revenues for the three months period were of $302.0 million, with a non-GAAP Adjusted Gross Profit of $77.3 million, and non-GAAP Adjusted Gross Margin that reached 25.6 percent.

“We are continuing to execute strongly against our long-term strategy with the delivery of Palm Pixi, the new carrier launches completed this quarter, and the upcoming opening of Palm's full developer program,” said Jon Rubinstein, Palm's chairman and chief executive officer. “We're still in the early stages of a long race, and we're energized by the opportunity to compete in this exciting market. We remain confident that Palm's innovative product design capabilities, integrated cloud services and the differentiated and delightful Palm webOS experience will provide the foundation for our sustained success.”

During the second quarter of its financial year 2010, Palm managed to ship a number of around 783,000 smartphone units, something that marks a 5 percent decrease from the first quarter of the financial year 2010, though it is a 41 percent growth over the same time frame a year ago. For the second quarter of the fiscal year 2010, the company announced smartphone sell-through of 573,000 units, registering a 29 percent decrease from the previous quarter, as well as a 4 percent drop from Q2 FY2009.

“On a GAAP basis, net loss applicable to common stockholders for the second quarter of fiscal year 2010 was $(85.4) million, or $(0.54) per diluted common share. This compares to a net loss applicable to common stockholders for the second quarter of fiscal year 2009 of $(508.6) million or $(4.64) per diluted common share. The company's second quarter of fiscal year 2009 results included a non-cash charge with a net impact of $396.7 million to the tax provision pertaining to the increase of the valuation allowance for the Company's U.S. deferred tax assets,” Palm also noted in the press-release announcing the results.