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Last updated: Friday, June 26, 2009

Palm on Thursday reported a fiscal fourth-quarter loss, but the smartphone maker’s shares rose sharply Friday morning on news of lower-than-expected deficits. Palm’s revenues for the fourth quarter of fiscal year 2009, ended May 29, were $86.8 million. Gross profit was $20.1 million. Palm posted a loss of $105 million on the quarter, or 78 cents per share. That compares with a loss of $43.4 million, or 40 cents per share, in the same period a year earlier. “The launch of Palm webOS and Palm Pre was a major milestone in Palm’s transformation; we have now officially reentered the race,” said Jon Rubinstein, Palm’s chairman and CEO. “We have more to accomplish, but the groundwork is laid for a very promising future here at Palm.” Rubinstein, a former Apple hardware executive, said Palm’s senior management team is capable, motivated and focused on execution. He pointed to a large group of developers waiting to build applications for Palm webOS and a new product pipeline he is betting will set a standard for the industry. Palm’s Bleeding Exposed Palm shipped 351,000 smartphones during the quarter, a six percent increase from the third quarter but a 62 percent year-over-year decline. Smartphone sell-through for the quarter totaled 460,000 units, down five percent versus the third quarter and down 52 percent year-over-year. Palm’s cash, cash equivalents and short-term investments balance was $255.1 million at the end of the fourth quarter. This total includes $103.5 million in net proceeds from the company’s public equity offering in March. Cash used in operations for the fourth quarter was $72.4 million. This news helped buoy Palm’s stock because analysts expected Palm to have less cash on hand. For the full fiscal year 2009, Palm’s revenues totaled $735.9 million. The company shipped 2,407,000 smartphones during the year, a 25 percent decline from the year-ago…

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Palm Adopts Apple Strategy with Limited Information

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