Palm profit drops despite strong smartphone sales

Amid rumors that the company could be acquired, Palm reported Thursday that its third-quarter profit was US$16.5 million, down from $19.8 million for the same quarter last year.

Palm recorded $410.5 million in revenue thanks to strong sales of its Treo smartphone, up from the $388.5 million the company collected for the third quarter of 2006.

Excluding certain charges, the company generated earnings of $0.16 per share for the period ending Feb. 28, falling below last year’s mark of $0.19 but beating estimates from Thomson Financial analysts of $0.12 on a non-GAAP (generally approved accounting principles) basis. Palm’s revenue also beat the Wall Street estimate of $403.6 million.

The company’s news release did not mention persistent industry buzz that the company could be acquired, by either Motorola or Nokia. Company leaders forecast a strong fourth quarter, with revenue expected to fall between $400 million and $410 million thanks to continuing global smartphone sales, said company CEO Ed Colligan in a statement.

Shop ▾
arrow up Amazon Shop buttons are programmatically attached to all reviews, regardless of products' final review scores. Our parent company, IDG, receives advertisement revenue for shopping activity generated by the links. Because the buttons are attached programmatically, they should not be interpreted as editorial endorsements.

Subscribe to the Best of Macworld Newsletter