— which has been dubbed with the media’s old “beleagued” adjective for Apple lately — has hired Todd Bradley — formerly executive vice president of global operations at Gateway — as executive vice president and chief operating officer for the company’s Solutions Group.
Bradley’s appointment is part of the company’s actions to solidify Palm’s leadership in the mobile computing marketplace and to return to profitability, according to Palm CEO Carl Yankowski. Key elements of the plan include bolstering the company’s management, reducing costs, and aggressively developing innovative products, he added.
Plus, Palm said channel sell-through has continued to improve as the company’s new line — the m500 series — is selling well in the United States and has just begun selling internationally. Earlier this month, revenue in its current quarter will come in at roughly half its forecast, which had already been sharply curtailed. On March 28, the company said
that its revenue for the third quarter rose
to $470.8 million, up 73 percent from the same quarter last year. However, concerned about the current economic downturn, the company announced plans to reduce its workforce and trim operating expenses by up to 15 percent.
Palm now expects revenue in its fiscal fourth quarter to range between US $140 million and $160 million, compared with its previous revenue outlook of $300 million to $315 million. The company expects its operating loss for the quarter to be between $170 million and $190 million, more than double its prior projection. Its quarter ends June 1.
At Gateway, Bradley, 42, was responsible for its multibillion-dollar consumer business. During his three years there, Bradley streamlined business and manufacturing processes and implemented the Six Sigma process, according to Yankowski. Bradley also held executive positions at GE Capital Corp., Dunn and Bradstreet Corp., and Federal Express Corp. Bradley replaces Satjiv Chahil, who was appointed interim head of the Solutions Group in March in addition to his duties as chief marketing officer.
Palm gained share in the U.S. retail marketplace, according to the latest weekly report published by NPD Intellect. Since the m500 series became available at retail stores, NPD’s weekly surveys show that the company’s market share rose from 60 percent to 67 percent and that the new products accounted for 24 percent of all Palm handheld sales.
“We’ve worked to improve our execution on engineering to manufacturing and logistics,” Yankowski said. “And despite the soft market, our efforts are beginning to show results. We’re encouraged by the popularity of our new products and the uptick in retail sales of our existing products as well. We’re pleased with customers’ response to our marketing and sales-incentive programs introduced over the last two months, and we’re gratified by the report of share growth as we complete this significant product transition.”