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palmOne Q3 Earnings Conference call

Thu Mar 17, 2005 - 5:02 PM EST - By Marcus Adolfsson

During the Q3 Earnings Conference call, Ed Colligan announced initiatives to significantly expand product and software development within palmOne.

During the last quarter, the software development staff grew by 35% and over 80% of palmOne's engineers are now in software. palmOne spent $23.4 million in R&D last quarter.

Over 295,000 Treo smartphones shipped last quarter, yielding revenue of $131.2 million. This is up 92% year-over-year, but down 10% from last quarter due to the shift from Treo 600 to Treo 650.

A delay on a future (unannounced) smartphone product was also mentioned, although no specific information on the product was given. Certification and customization efforts were cited as a source for the delays. For future products, the increased R&D budget will let palmOne customize Smartphones for carriers simultaneously instead of serially.

Colligan did announce that a new PDA (not smartphone) that combines entertainment and business into a compact package will ship later this year. Engadget is reporting a rumor that a new palmOne PDA will have 4GB of internal memory and built-in WiFi.

Colligan also mentioned that future Treo products will utilize "UMTS, EVDO and the evolving WiFi networks" technology. "We are making investments in next generation radios."

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