Palm’s Q2 Earnings Slipped As It Shipped Fewer Smartphones

Palm Pixi

Just as the Sunnyvale-based company had warned, Palm’s device sales fell in the second quarter because of its dependence on new device launches. In the quarter ended Nov. 27, Palm (NSDQ: PALM) said it shipped 783,000 smartphones, representing a 5 percent decrease from Q1 and a year-over-year increase of 41 percent.

The company reports both GAAP and non-GAAP figures because accounting rules dictate that Palm spreads the revenues from phones over the life of the product. Therefore, the unofficial figures actually do a better job of portraying what happened in the second quarter. Non-GAAP revenues in Q2 totaled $302 million, compared to non-GAAP revenues of $360.7 million in the prior period. The company’s non-GAAP net loss in Q2 was $59.6 million, or 37 cents per diluted share, widening from a non-GAAP net loss of $13.6 million, or 10 cents a share in the prior quarter.

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At the end of the quarter, the company had $590.0 million in cash and equivalents, which includes net proceeds of about $360 million from the company

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