Palm Reports Q2 FY09 Results
Palm, Inc. today reported that total revenue in the second quarter of fiscal year 2009, which ended Nov. 28, 2008, was $191.6 million. Smartphone sell-through for the quarter was 599,000 units, down 13 percent year over year. Smartphone revenue was $171.0 million, down 39 percent from the year-ago period.
"We're working through an undeniably difficult period," said Ed Colligan, Palm president and chief executive officer, "but near-term challenges shouldn't overshadow the fact that we are on track to deliver a breakthrough new platform and products that will bring a truly differentiated smartphone experience to our customers and reestablish Palm as a leading innovator in the mobile industry."
The second quarter of fiscal year 2009 net loss applicable to common shareholders 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. This non-cash charge was the primary driver of a net loss applicable to common shareholders for the second quarter of fiscal year 2009 of $(508.6) million, or $(4.64) per diluted common share on a GAAP basis. The increase in the valuation allowance does not reflect a change in the company's outlook, nor does it alter the company's ability to utilize the underlying net operating loss carry forwards. "We have reserved against these assets in accordance with GAAP, however we still expect to utilize our net operating loss to offset future U.S. cash taxes once we become profitable," said Andy Brown, chief financial officer.
In addition to the tax provision charge, net loss applicable to common shareholders included stock-based compensation of $5.8 million, amortization of intangible assets of $0.9 million, restructuring charges of $8.3 million, impairment of non-current auction rate securities of $14.3 million and accretion of series B convertible preferred stock of $2.4 million. This compares to net loss applicable to common shareholders for the second quarter of fiscal year 2008 of $(9.6) million, or $(0.09) per diluted common share, which included stock-based compensation of $14.3 million, amortization of intangible assets of $1.0 million, restructuring charges of $10.1 million and accretion of series B convertible preferred stock of $0.8 million.
Net loss for the second quarter of fiscal year 2009, measured on a non-GAAP(1) basis, totaled $(80.2) million, or $(0.73) per diluted share, which excludes stock-based compensation, amortization of intangible assets, restructuring charges, impairment of non-current auction rate securities, accretion of series B convertible preferred stock and the non-cash net impact on the tax provision resulting from the increase of the valuation allowance for the Company's U.S. deferred tax assets. This compares to non-GAAP net loss for the second quarter of fiscal year 2008 of $(7.8) million, or $(0.07) per diluted share, which excluded the effects of stock-based compensation, amortization of intangible assets, restructuring charges and accretion of series B convertible preferred stock and adjusting the related income tax provision to 42 percent.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter of fiscal year 2009 totaled $(84.5) million. EBITDA, adjusted to add back stock-based compensation, net other income (expense), restructuring charges and impairment of non-current auction rate securities, or Adjusted EBITDA, totaled $(55.8) million.
Also see: Palm Q2 FY09 Conference Call Highlights
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RE: Centro 2M stall?
Trust me on that one.
The Me-Too Media and every "analyst" and blog in the world did, true, but =PALM= NEVER said it.
RE: Centro 2M stall?
http://www.palminfocenter.com/comments/7506/#144352
RE: Centro 2M stall?
RE: Centro 2M stall?
"Sold" is purposefully ambiguous.
Palm =NEVER= said "2 million sold-through".
RE: Centro 2M stall?
Carriers have also figured out that ARPU can be inflated with a feature phone as much as - if not more than - a Palm smartphone. Gack!
P.S. Over 2 M Centros HAVE been sold THROUGH. Trust me*
*Because I am Meegneh.
Colligan's DEPENDING on generic demand
Let's see how THAT "plan" works out!
Contrast and Compare
>RIM earnings climb as forecast beats estimates
Smart-phone maker still predicts strong growth in sales for year's end
Revenue grew 66% to $2.78 billion, with about 6.7 million devices shipped during the quarter.
don't blame the economy. it's execution.
RE: Contrast and Compare
With Palm, once you walk out the door you're useless to them. A just-launched apathetic app store, no real multimedia marketing deals, no ongoing revenue, etcetera, etcetera. If they want to make more money off you, they need to make you buy another device, and they can't do that.
RE: Contrast and Compare
i've been calling for palm services for a long time -
mypalm.com cloud - push email, desktop, apps, music, storage, etc.
nope, they want to be a commodity. and a commodity they shall be.
RE: Contrast and Compare
Me, too: http://tinyurl.com/colemanservices
RE: Contrast and Compare
Yeah, but the kind YOU use would have gotten Palm tried for obscenity in seventeen states. Plus the Dominion of Alaska!
Palm will bury you all.
Disclaimer: I have ZERO interest in Palm stock, I was never fired from Handspring/Palm and I do not post a dozen messages a day to the Yahoo Palm message board bashing Palm. I have never been banned from Treocentral for trolling the Treo fanbois and fangrrrls.
As a Palm-optimist I expect:
1) No more new PDAs from Palm. 3 years without a new PDA release is a hint for the fanbois and fangrrrls. OOPS!
2) Nova running consumer and prosumer line, WinMob running business line.
3) Smoke & Mirrors (S&M) show in 3 weeks. Palm will only announce PRELIMINARY OS development milestones. Remember the Foleo? Gack! Whatta game!
4) Another game changer from Apple in 3 weeks.
5) W.r.t. dates: slipping even further. Remember Cobalt? Foleo? Linux on Palm? ALP OS? History is the best teacher.
6) More departures from Palm HQ in January. 50 more axed? Gack! Skeleton crews work when outsourcing is king. The finger pointing, weeping and gnashing of teeth has begun. Those who have been forced out of Palm pre-Christmas (like last year?) paint an ugly picture of the Palm corporate culture:
"Inbred". "Clueless". "Stupid". "Confused". "Unfocused". "Hopeless". The sales force kiddies were apparently not Colligan believers.
7) A screenshot "leaked" from a certain Chinese "source" in a few days. Whee! Hang on!
8) The endgame from Elevation is mere weeks away. It will be the perfect ending for the Palm soap opera. Trust me*.
*Be Careful Out There!
Meegneh
RE: Palm will bury you all.
Game changer? From Apple? Are you kidding?
Apple takes other people's technology, puts it into a nice box, and puts their name on it. They've done this since the Macintosh, and the iPhone is no different.
Apple may come out with some overpriced Apple-branded netbook or touchscreen netbook, and they'll get a lot of press and a modest market share. And when the initial excitement dies down, they'll abandon the market niche again and move on to something else.
RE: Palm will bury you all.
Jobs has just taken Jeff Hawkins' vision and made it reality. Poor Jeff!
http://upload.wikimedia.org/wikipedia/commons/5/5e/IPhone_sales_per_quarter.png
http://en.wikipedia.org/wiki/File:IPodsales_2008Q3.svg
*I am Meegneh.
RE: Palm will bury you all.
FrequentVisitor @ 12/20/2008 8:51:32 AM #
RE: Palm will bury you all.
SeldomVisitor @ 12/20/2008 10:22:22 AM #
Ah...another Obsessed Fan.
I'm obviously having success.
Hmmm... a response 90 minutes after the initial post in this thread. I wonder if a certain someone is monitoring Palminfocenter 24/7? Remind me again - WHO exactly is the one that's a Wee Bit Obsessed*?
* [HINT] Get a mirror and find the Stalker.
TTFN
RE: Palm will bury you all.
WHY have you spent literally HUNDREDS (thousands?) of hours reading and posting to MULTIPLE Palm sites over the years, continually struggling to put a negative spin on EVERYTHING about the company? Is that "normal" behavior? Why do you obsess over Palm like this? Did someone at Palm do something bad to you to trigger this... odd... behavior on your part? Just wonderin'.
Clear out your cubicle, son. Mr. Johnson From Handspring Security is here to escort you from the building.
Giggle. Indeed.
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Centro 2M stall?
Someone line up the dates. Does this include the two-millionth Centro? Or is it saying sales slowed dramatically after hitting two million?