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.

This story, "Palm profit drops despite strong smartphone sales" was originally published by PCWorld.

To comment on this article and other Macworld content, visit our Facebook page or our Twitter feed.
Shop Tech Products at Amazon