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Palm Announces Q1 FY2010 Earnings
 Palm just announced revenues in the first quarter of fiscal year 2010, ended Aug. 28, 2009, were $68.0 million. Gross profit was ($2.8) million, and gross margin was (4.1) percent. These results include the effects of subscription accounting applied to Palm webOS products as required by GAAP. In accordance with this methodology, revenues and direct cost of revenues for Palm webOS products (currently Palm Pre smartphone) are deferred and recognized over the product's estimated economic life.
Later in the announcement, they explain that "Non-GAAP Adjusted Revenues in the first quarter totaled $360.7 million, non-GAAP Adjusted Gross Profit was $100.6 million and non-GAAP Adjusted Gross Margin was 27.9 percent."
What does this mean?
As MarketWatch explained in its post, though losses grew, sales beat Street targets.
"...excluding charges related to stock options and other items, net losses would have been $13.6 million, or 10 cents a share, for the recent period. Excluding revenue deferred from sales of the Pre, the company said adjusted revenue would have been $360.7 million. Analysts were expecting a net loss of 24 cents a share on revenue of $297.7 million, according to consensus estimates from Thomson Reuters."
Palm said it shipped a total of 823,000 smartphone units during the quarter, representing a 134 percent increase from the fourth quarter of fiscal year 2009 and a year-over-year decrease of 30 percent. Smartphone sell-through for the quarter was 810,000 units, up 76 percent from the fourth quarter of fiscal year 2009 and down 21 percent year-over-year.
[Chart CNNMoney.com]
Note: The number represents overall units. Palm did not provide a breakdown between types (Pre, Treo Pro, etc).
More details are available at our sister site, PreCentral in Dieter Bohn's write-up. He is providing updates from Palm's conference call as well.
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