by CIO Staff

Palm Sees Rise in Profit

Jun 30, 20062 mins
IT Leadership

Palm, a producer of handheld computers and mobile phones, on Thursday logged increased quarterly profit due to healthy sales of its Treo handhelds. However, the company also issued revenue and earnings predictions that did not meet current Wall Street expectations, Reuters reports.

Palm, formerly PalmOne, said its net income increased to $27.2 million, or roughly 25 cents per share, for fiscal quarter four, up nearly $10 million from $17.7 million, or approximately 17 cents per share, a year ago, according to Reuters.

Not including special items, Palm’s profit was roughly 29 cents per share, Reuters reports.

Based on this number, analysts predicted an average profit of 23 cents per share, according to Reuters.

Revenue was up 20 percent to $403.1 million, while analysts had predicted $405.4 million, Reuters reports.

Palm expects to bring in 18 to 19 cents per share in the current fiscal first quarter, not including one-time items, which is three or four cents lower per share than analysts’ average predictions, according to Reuters.

Including one-time items, Palm said it expected 13 to 14 cents per share in quarterly earnings, Reuters reports. The company’s revenue for the quarter is predicted to be around $380 million or $385 million, which is significantly lower than Wall Street forecasts of $412.4 million, according to Reuters.

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