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Palm Announces Q2 FY2010 Results
On Thursday, Palm reported that total revenues in the second quarter of fiscal year 2010, ended Nov. 27, 2009, were $78.1 million. Gross profit was $5.5 million, and gross margin was 7.0 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 and Palm Pixi smartphones) are deferred and recognized over the products' estimated economic lives.
>> On a non-GAAP basis, which includes revenue deferred from the sale of certain smartphone devices, the company said revenue for the quarter was $302 million.
>> Analysts were expecting the company to report a net loss of 32 cents per share on revenue of $266.2 million, according to consensus estimates from Thomson Reuters.
In the announcement, Jon Rubinstein, Palm's chairman and chief executive officer was quoted stating the following:
"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. 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."
Palm shipped a total of 783,000 smartphone units during the quarter, representing a 5 percent decrease from the first quarter of fiscal year 2010 and a year-over-year increase of 41 percent compared to the second quarter of fiscal year 2009. Smartphone sell-through for the second quarter was 573,000 units, down 29 percent from the first quarter of fiscal year 2010 and down 4 percent year-over-year.
>> Analysts, on average, were expecting roughly 600,000 units shipped for the period.
Check out the earnings coverage at our sister site, PreCentral.net.
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Sources: Palm, MarketWatch (Dan Gallagher) and Reuters.
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