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Palm reports $97m Q2 loss, dismal unit shipments

updated 06:30 pm EST, Thu December 18, 2008

Palm quarterly financials

Smartphone-maker Palm has reported dismal results for smartphone shipments in the second fiscal quarter of 2009, with overall distribution of less than 600,000 units, 13 percent below last year's quarter. The company took a harder hit with its smartphone revenue of $171 million, marking a decrease of 39-percent year over year. The numbers also indicated a loss of $97.7 million before income tax provisions, and a gross profit decrease of over 60 percent. "We're working through an undeniably difficult period," said Ed Colligan, president and CEO.

The company recently announced that it would lay-off workers, although the number of lost jobs was not provided. Despite the hiring of two former Apple executives, a recent ChangeWave study found that only five percent of companies plan on purchasing a Palm device, down from 10 percent a year ago. The iPhone and BlackBerry smartphones dominated the results with 22 percent and 78, respectively.

Apple also took the number two position for market share in the business segment when comparing consecutive quarters, driving to 14 percent from 9, while Palm dropped from 15 percent to 11 percent. The declining trend has continued for more than a year, with Palm previously holding a 28 percent business market-share in February of 2007 compared to 59 percent for RIM.

Despite the clearly troubling numbers, Colligan tried to reassure investors that his company might have some new tricks up its sleeve. "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 company has organized a special event at the upcoming Consumer Electronics Show. Tipsters have suggested that the overhauled Nova operating system and a new smartphone will both be launched at the January 8th event. The new products could be pivotal in deciding Palm's fate.




by MacNN Staff

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Comments

  1. sfmitch

    Joined: Dec 1969

    0

    Stunning collapse

    It is pretty breathtaking how fast and how far Palm has fallen.

    I have absolutely no reason to believe there new products will turn the ship around.

    Good bye Palm!

  1. sfmitch

    Joined: Dec 1969

    0

    Stunning collapse

    It is pretty breathtaking how fast and how far Palm has fallen.

    I have absolutely no reason to believe there new products will turn the ship around.

    Good bye Palm!

  1. slider

    Joined: Dec 1969

    0

    Gosh, Really

    Please follow this link:

    http://www.engadget.com/2006/11/21/palms-ed-colligan-laughs-off-iphone/

    This is how Ed responded when the iPhone was first announced. This is Palms leadership.

  1. slider

    Joined: Dec 1969

    0

    Gosh, Really

    Please follow this link:

    http://www.engadget.com/2006/11/21/palms-ed-colligan-laughs-off-iphone/

    This is how Ed responded when the iPhone was first announced. This is Palm's leadership.

  1. lamewing

    Joined: Dec 1969

    0

    If only

    If only Palm could have created a modern device that did all (and more) that the Apple Newton did.

    Apple refuses to make a modern version of the Newton, so someone else needs to pick up the ball.

    I guess it won't be Palm.

    /sigh

  1. JeffHarris

    Joined: Dec 1969

    0

    Suspended Animation

    Palm has been in stasis for years.

    The Palm OS has seen no real meaningful upgrades since color was added in Palm OS 3. Minor features were added to subsequent system upgrades but little else.

    Adding shiny buttons and multi-colored shells to a stagnant product line is not innovation; It's marketing.

    It's a shame to see how far Palm has fallen. It's been a slow, steady freefall. This is the price of a LACK of innovation.

  1. Guest

    Joined: Dec 1969

    0

    nova

    Has anyone seen Nova? One good product can turn everything around.

  1. Guest

    Joined: Dec 1969

    0

    nova

    Has anyone seen Nova? One good product can turn everything around.

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