palmOne Reports Q2 FY'04 Results
palmOne, which consists of the former Palm, Inc. Solutions Group business plus Handspring, today reported revenue of $271.2 million for the second quarter of fiscal year 2004, ended Nov. 28, up 5 percent from the $257.9 million reported during the second quarter a year ago.
These results include effects of the Oct. 28 spin-off of PalmSource and the Oct. 29 acquisition of Handspring. Accordingly, palmOne results have two months of PalmSource results included in discontinued operations and one month of Handspring results included in income from continuing operations.
For the second quarter of fiscal year 2004, income from continuing operations, in accordance with generally accepted accounting principles (GAAP), was $2.6 million, or $0.07 per share. This compares to income from continuing operations from the year ago quarter of $9.5 million, or $0.33 per share. Including discontinued operations, the net loss for the second quarter of fiscal year 2004 was $4.1 million, or $0.11 per share, compared to net income in the second quarter a year ago of $3.5 million or $0.12 per share.
Net income in the second quarter of fiscal year 2004, measured on a non-GAAP basis, totaled $5.5 million, or $0.14 per share. This compares to non-GAAP net income in the second quarter a year ago of $8.5 million, or $0.29 per share. Non-GAAP net income excludes the effects of amortization of intangible assets and of stock-based compensation, restructuring charges and losses from discontinued operations.
"We're pleased with our progress this quarter," said Todd Bradley, palmOne president and chief executive officer. "Our fall launch was smooth, and our products immediately received broad and significant recognition. New business and consumer solutions helped us increase revenue, gain market share, improve inventory turns and achieve positive operating income. "We're in excellent position to continue to lead the industry with the broadest array of software-rich handheld computing and communications solutions that our customers, partners and stockholders expect," Bradley said.
The company noted the following year-over-year operational highlights in the quarter's results:
During the quarter, palmOne, Inc. announced the following:
-- The stockholders of Palm, Inc. approved a transaction that included the spin-off of PalmSource, the former operating-system platform subsidiary of Palm, Inc., and the acquisition of Handspring.
-- Three new handheld-computing solutions: the Zire 21 handheld for entry-level consumers, the Tungsten E handheld for cost-conscious mobile professionals seeking premium performance including multimedia, and the Tungsten T3 handheld for the most demanding professionals.
-- New carriers bringing the Treo 600 smartphone directly to customers of Orange, S.A. in the U.K., France and Switzerland; Sprint, Cingular and AT&T Wireless customers in the United States; plus to customers of other carriers via a wide array of distributors around the world.
During the quarter, palmOne sold 1.4 million handheld computing and communications solutions, bringing the total number the company has sold to 24.4 million. The company's ending cash and cash equivalents balance was $218.2 million.
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