PalmSource Reports Q4 and FY04 Year End Results

PalmSource today reported thier 4Q and Fiscal Year 2004 year end financial results. Revenues were up slightly over the prior year and the company reported a net loss for both the quarter, but beat analyst expectations.

PalmSource reported revenues of $17.6 million for the fourth quarter ended May 28, 2004, as compared to revenues of $17.3 million for the same period of the prior fiscal year. Revenues for the fiscal year ended May 28, 2004 were $73.1 million, compared to revenues of $73.4 million for the prior fiscal year.

  Net loss for the fourth quarter of fiscal year 2004 was $2.9 million, or $0.23 loss per share.  Net loss for the same quarter of the prior fiscal year was $3.4 million, or $0.34 loss per share. Net loss for the fiscal year ended May 28, 2004 was $15.2 million, or $1.40 loss per share, as compared to a net loss of $21.8 million, or $2.18 loss per share, for the prior fiscal year.

At May 28, 2004, cash, cash equivalents, restricted investments, short-term and long-term investments were $88.6 million.  Cash utilized for operating activities during the fourth quarter of fiscal year 2004 was $3.1 million.  

On a non-GAAP basis that excludes the effect of stock–based compensation, amortization of intangible assets, restructuring, and/or separation expenses (related to the spin-off of PalmSource from palmOne) net loss for the fourth quarter of fiscal year 2004 was $0.6 million, or $0.05 loss per share. This compares to a non-GAAP net loss for the same quarter of the prior fiscal year of $0.6 million, or $0.06 loss per share.   Non-GAAP net income for the fiscal year ended May 28, 2004 was $1.2 million, or $0.10 earnings per share, as compared to a non-GAAP net loss of $11.7 million, or $1.17 loss per share for the prior fiscal year.

Fourth Quarter 2004 Highlights

  • PalmSource completed a stock offering of 3.45 million shares, resulting in net proceeds of approximately $58.7 million. 

  •  PalmSource entered into a technology distribution agreement with Research In Motion (RIM) that permits RIM to license a BlackBerry Connect offering to Palm OS licensees. Together, BlackBerry Connect and Palm OS will extend email and corporate data connectivity to Palm Powered smart mobile devices.

  • Palm OS licensees reported shipments of 1.4 million Palm Powered units, of which 78% were handheld devices, 18% were smartphone devices and 4% were other devices. In the same quarter of the prior fiscal year, Palm OS licensees reported shipments of 1.5 million Palm Powered units, of which 88% were handheld devices, 10% were smartphone devices and 2% were other devices.

Business Outlook
Management’s current outlook for the first quarter of fiscal year 2005 is as follows:

     
  • Revenues are expected to be in the range of $18 million, plus or minus 5%.
  •  Financial results on a GAAP basis are expected to be in the range of a net loss of $2 million, or $0.14 loss per share, to breakeven (including a $1.9 million benefit resulting from prepayment of the Texas Instruments convertible note at a discount); and on a non-GAAP basis, are expected to be in the range of a net loss of $2 million, or $0.14 loss per share, to breakeven.  The difference between our financial results on a GAAP basis and a non-GAAP basis is expected to be primarily the result of the benefit resulting from the prepayment of the Texas Instruments convertible note, charges for stock based compensation, and restructuring costs that may be incurred.
 

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What ?!!?

Konstantin @ 6/27/2004 2:58:47 PM #
No one to come and comment?

Waddabout u Ska? Come say few words will ya ?

RE: What ?!!?
Strider_mt2k @ 6/27/2004 5:18:28 PM #
What if they posted a news article, and no one came?

RE: What ?!!?
RhinoSteve @ 7/1/2004 5:16:59 AM #
Ok I'll comment. This is good news. A nice steady growth curve with smart spending in all the right places. Nice conservative growth curve. With most tech stocks still bottoming out, this is very good news since it sticks out from the crowd.
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