PalmSource Secures $15M Credit

PalmSource has announced it has selected Silicon Valley Bank (SVB), the primary banking subsidiary of Silicon Valley Bancshares, for its principal banking relationship and has established a $15 million line of credit with SVB for working capital purposes.

"SVB is an acknowledged leading provider of banking services in the technology industry, and we are delighted to have established a financial relationship with a highly regarded institution that understands our business and our banking needs", said Al Wood, PalmSource chief financial officer. "We believe the support of SVB is an important factor in strengthening PalmSource's financial foundation for the future."

"We recognize the significant opportunities that lie ahead for PalmSource and we're excited to welcome the company into our expansive portfolio of technology leaders and innovators," said Maria Fischer Leaf, senior vice president, Silicon Valley Bank. "For technology companies of any size, Silicon Valley Bank has become an indispensable partner, offering sophisticated products and a commitment to customized, caring service. We've found the PalmSource approach to building relationships mirrors our philosophy of working closely with our clients and we're looking forward to serving their long-term financial needs."

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"Excuse me, what's your exchange rate on the ¥?"

The Ugly Truth @ 10/20/2003 2:05:34 PM #
Babelfish (press release-speak -> English) translation: We're going to make sure we can hold out a few more months until we're sold.


Palm/PalmSource/Palm Solutions Group/pa1mOne has extended this charade far too long.

Bloated organization + dwindling revenues = net losses. Loans can't alter this equation.

As the most entrenched PDA OS, PalmOS has tremendous value to a company with the resources to properly exploit this asset. Had Palm been sold a year ago, PPC and Symbian would not have become as established as they currently are.

Sometimes the truth just isn't pretty™

RE:
bcombee @ 10/20/2003 3:10:33 PM #
Wrong.

This announcement isn't saying that PalmSource is borrowing $15 million. It's just saying that they have credit for that much. Companies in strong positions often set up credit lines so that when they need the cash to expand or make up for short-term cash flow problems, they will be able to get it. It's like a person taking out a credit card for emergency use -- its better to get one when you have a strong credit rating than to get it when you're in a bad situation.

--
Ben Combee, CodeWarrior for Palm OS technical lead
Programming help at www.palmoswerks.com

RE: "Excuse me, what's your exchange rate on the ¥?"
The Ugly Truth @ 10/20/2003 4:17:06 PM #
Wrong.

This announcement isn't saying that PalmSource is borrowing $15 million.

I never claimed they were. But as a valuable entity - that actually generates a profit (unlike the hardware part of Palm/pa1mOne/þ@£µ0^3) - it's easier for PalmSource to acquire a LOC than it is for that completely different company, Palm Solutions Group. So if they have to deal with another quarter like this: http://biz.yahoo.com/e/031014/palm10-q.html prior to a bailout, they have a little breathing room to help out that completely different company, Palm Solutions Group. As always, people should take everything with a boulder of salt and wait to see what happens. You, Mr. Combee, are a Palm insider, so I believe you know what's really going on in Miltipas.


Sometimes the truth just isn't pretty™

RE:
hoplites @ 10/20/2003 5:04:42 PM #
I thought Nagel just said they don't need anymore oney. What's this with extending credit line?
RE: "Excuse me, what's your exchange rate on the ¥?"
The Ugly Truth @ 10/20/2003 5:08:03 PM #
I thought Nagel just said they don't need anymore money. What's this with extending credit line?


He must have been referring to Palm Solutions Group, which is, as you know a completely different company. Don't you understand, PalmSource (Palm's profit maker) wants the line of credit, while Palm Solutions Group (losing millions each month) doesn't need any money. Got it now? Why don't you believe everything he says? You need to be a more trusting person. Try to work on that for the rest of the year.

(Another reason for the LOC may be to cover the end-of-year bonuses for pa1mOne's 5000 Vice Presidents.)



Sometimes the truth just isn't pretty™

RE:
bcombee @ 10/20/2003 5:10:40 PM #
OK, looking at PalmSource's numbers, I see a company that has 2 million USD higher revenue for the quarter versus last year at the same time, and that has reduced expenses by about 1.5 million. Both of these are good trends towards profitability; I also see that they've spent a considerable amount on R&D towards their next generation OS, and that that investment has a good chance of paying off in 2004. While there's plenty of reasons to be concerned, I think the trends are positive, and I think both PalmOne and PalmSource have good potential in the future.

--
Ben Combee, CodeWarrior for Palm OS technical lead
Programming help at www.palmoswerks.com
RE: "Excuse me, what's your exchange rate on the ¥?"
The Ugly Truth @ 10/20/2003 5:24:22 PM #
OK, looking at PalmSource's numbers, I see a company that has 2 million USD higher revenue for the quarter versus last year at the same time, and that has reduced expenses by about 1.5 million.

I'm a bit more simplistic in my analysis, Mr. Combee. I ask questions like "what was the actual amount earned?" and "how much in total was spent?" in the quarter. Anything else becomes statistics, and we all know what they say about statistics...

Sometimes the truth just isn't pretty™

RE:
hoplites @ 10/20/2003 9:23:16 PM #
.....hey whatever happen to dot.com financial philosophy? If yer not burning money like crazy, and have ever expanding revenue like a star goin nova, yer not doing your business right!

... only fools concern about actually positive earning.

.....weeee...... come on everybody, buy PSRC. It's burning money.... It's party time like it's '00.

(just don't remind anybody what year it is now)

RE: "Excuse me, what's your exchange rate on the ¥?"
The Ugly Truth @ 10/22/2003 6:07:11 AM #
OK, looking at PalmSource's numbers, I see a company that has 2 million USD higher revenue for the quarter versus last year at the same time, and that has reduced expenses by about 1.5 million. Both of these are good trends towards profitability;

OK, looking at PalmSource's numbers, I see a company that decreased spending on research and development by $2,000,000 between 2002 and 2003. I think that more than explains the reduction in expenses seen in 2003, doesn't it? I also see general and administrative costs going up in 2003. Same numbers, completeley different spin.

Love them statistics.



Sometimes the truth just isn't pretty™

Now can you see why PalmSource wants the$15 million?
The Ugly Truth @ 10/23/2003 1:45:56 AM #
http://www.edgar-online.com/bin/edgardoc/finSys_main.asp?dcn=0001193125-03-054359&nad=


From Palm's latest SEC filing (that conspiracy theorists claim has been supressed by the Palm fanboy sites):

"At the date of the PalmSource distribution, PalmSource will assume $15.0 million of a note payable to Texas Instruments by Palm, which bears interest at 5.0% per annum and is due December 6, 2006."

Sometimes the truth just isn't pretty™

RE: "Excuse me, what's your exchange rate on the ¥?"
The Ugly Truth @ 10/24/2003 10:56:39 AM #
Care to comment, Mr. Combee? Corporate games are amazing.

Sometimes the truth just isn't pretty™

Palm's financial health. How will the sheep survive?

The Ugly Truth @ 10/20/2003 4:59:38 PM #
http://biz.yahoo.com/e/031014/palm10-q.html


Has there been a recent article on PIC about how Palm is doing financially?

How about doing a well-researched article looking at how much Palm and Handspring have made/lost since their inception + comparing Palm PDA sales ("22.9 million Palm Branded devices, and approximately 30.1 million Palm Powered devices [have] been sold worldwide.") to PPC sales over the same time span? Hard-hitting journalism. Gotta love it.

Sometimes the truth just isn't pretty™

RE: Palm's financial health. How will the sheep survive?
hoplites @ 10/20/2003 9:27:45 PM #
You mean PIC has to go beyond reprinting Palm inc's Press release? hmmm...

PIC doesn't even bother posting quarterly market share anymore, eventhough it was religiously quoting it until late last year when POS marketshare was still 60%+

Somebody has to protect the illusion of Palm economy right?

Next headline, Nagel divulged in an interview, that Nigerian government plans to adopt PalmOS for their email system. And from hence on, Palm doesn't need more money. The world rejoice, Palm marketshare in west africa is 90%. Those pesky Symbian and Microsoft better be afraid now.

RE: Palm's financial health. How will the sheep survive?
mikecane @ 10/21/2003 9:20:33 AM #
Hey, let's talk about how much $$$ Ba'al Gates is flushing down the toilet with Pocket PC. Gates has admitted the "mobile division" (snicker!) is a money-loser. I bet it has lost more than Palm since it's inception!

And I can't wait for those humongous lawsuits from people who can't dial 911 on their MS Smurfpones because it takes two fekkin minutes to boot after hitting the On button! It's time like these that I wish I was a a lawyer. Man, would MS pay and pay and pay...

RE: Palm's financial health. How will the sheep survive?
hoplites @ 10/21/2003 1:35:06 PM #
Good wishfull thinking mike. Is that before or after Sony quitting the handheld business? I am betting Sony will fold their PDA unit happens first.
RE: Palm's financial health. How will the sheep survive?
mikecane @ 10/21/2003 7:40:41 PM #
And I'm betting you can fekkin logon under that ID again, ska!

Hand over the dough, muggerfugger.

RE: Palm's financial health. How will the sheep survive?
The Ugly Truth @ 10/22/2003 3:28:15 AM #
Hey, let's talk about how much $$$ Ba'al Gates is flushing down the toilet with Pocket PC. Gates has admitted the "mobile division" (snicker!) is a money-loser. I bet it has lost more than Palm since it's inception!

I'm sure you're right, since for several years Palm was posting huge profits. It would be nice to see some hard numbers, though. But it doesn't really matter, since PPC's losses are trivial to Microsoft and they consider the past few years an investment in their future.

Microsoft would have been a lot better off if they simply had been able to buy Palm and re-brand it as a Microsoft product.

Sometimes the truth just isn't pretty™

RE: Palm's financial health. How will the sheep survive?
mikecane @ 10/23/2003 1:46:40 PM #
MS did try to buy Palm. USR or 3Com or whoever nixed that. (Jobs tried to buy it too.)

Now come on, TUT, you know better than to think Ba'al Gates would've simply rebranded PalmOS! He would have made it landfill!

RE: Palm's financial health. How will the sheep survive?
Foo Fighter @ 10/23/2003 4:29:25 PM #
You got that right. Microsoft NEVER would have allowed PalmOS to survive, once acquired. It was to be discontinued so WinCE would have a clear path to become the standard mobile platform. Or so Microsoft thought. Remember Microsoft's hair-brained scheme to embed Windows in every hardware category, called "Windows Everywhere" like AutoPC. Good grief! What a nightmare world that would have been. It would have given the computing term system "Crash" a whole new meaning.

-------------------------------
My blog: www.pocketfactory.com

Perspective

The_Annoying_Truth @ 10/21/2003 1:11:02 PM #
Dudes, they are just computers. A little perspective please.



Could I possibly be more annoying?™


RE: Perspective
mikecane @ 10/21/2003 7:41:34 PM #
Right, enough of this business.

Ryan, it's time to crack down on this sort of thing. It was mildly cute when someone was "Fool Faughter" (mildly cute because the dink couldn't spell!), but if *every* damned ID is going to be matched by an "anti-ID," PIC will become the last place people will want to post at -- or read.

RE: Perspective
Admin @ 10/21/2003 7:48:31 PM #
this is a great post
RE: Perspective
Foo Fighter @ 10/22/2003 12:18:35 AM #
> " It was mildly cute when someone was "Fool Faughter" (mildly cute because the dink couldn't spell!)"

That's why I never protested his presence here. I didn't even have to supply the rope. The twit hung himself without his own stupidity. Poetic justice.


-------------------------------
My blog: www.pocketfactory.com

I guess what I'd like to see....
orb2069 @ 10/22/2003 10:49:57 AM #
...Is people limited to one IP/Username combination per hour - I feel like the last user on here who dosen't have six dummy accounts to their name to take cheap pot shots with.

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