palmOne Reports Q3 FY04 Results
palmOne today reported revenue of $242.5 million for the third quarter of fiscal year 2004, ended Feb. 27, up 22.6 percent from the $197.9 million reported during the third quarter a year ago. The company sold over 900,000 handhelds in the quarter and saw increasing market share.
For the third quarter of fiscal year 2004, net loss, in accordance with generally accepted accounting principles (GAAP), was $9.3 million, or $0.20 per share. This compares to a net loss from the year-ago quarter of $172.3 million, or $5.93 per share. The net loss of $9.3 million for this quarter included restructuring charges of $4.5 million and amortization of intangible assets and stock-based compensation of $5.4 million.
"Over the past quarter, we strengthened our leadership in handhelds and saw excellent demand for our Treo smartphone," said Todd Bradley, palmOne president and chief executive officer. "The strong results this quarter show that our strategy of delivering scale from the handheld product line, coupled with growth from the wireless product line, is working. We are very excited about our prospects."
The company noted the following year-over-year operational highlights in the quarter's results:
- Revenue up 23 percent;
- Average selling price of $233 per device, up from $169;
- Gross margin at 28.9 percent, up from 23.8 percent;
- Inventory-turn improvement to 22 from 20; and
- Cash, cash equivalents and short-term investments of $239.8 million, up from $224.8 million.
During the quarter, palmOne sold approximately 938,000 handheld computing and communications solutions, bringing the total number the company has sold to 25.3 million. In handheld computers, NPD reported that palmOne increased its market share in U.S. all-channel sales (including retail, commercial and online) by 11 percent to 57.7 percent in January, the most recent monthly report, compared with the same period a year ago.
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