PalmSource Reports Fiscal First Quarter Results
PalmSource today announced results for its fiscal first quarter ended September 2, 2005. Revenue for the first quarter of 2006 was $15.8 million, as compared to $18.2 million reported in the year ago quarter. Gross margin was 93 percent, roughly flat with the year ago quarter.
GAAP net loss was ($2.0) million or ($0.12) per share, as compared to a GAAP net loss of ($0.2) million or ($0.01) per share reported in the year ago quarter.
Non-GAAP net income for the quarter was approximately $0.2 million or $0.01 per share, as compared to non-GAAP net income of $0.8 million or $0.06 per share in the year ago quarter. Non-GAAP net income and EPS for the first quarter of 2006 excluded approximately $1.5 million for stock-based compensation expense, $0.5 million for costs associated with the Company's merger agreement with ACCESS Co., Ltd., (Tokyo Stock Exchange: 4813) announced on September 8, 2005 and $0.2 million for amortization of purchased intangible assets.
During the first quarter, PalmSource executed on its previously announced restructuring plan in its product development and sales groups and implemented the cost cutting initiatives designed to improve operating performance. This led to reduced operating expenses and contributed to sequentially higher operating margins when compared to the fiscal fourth quarter of 2005.
GAAP loss per share for the first quarter of 2006 was calculated using basic shares outstanding of 16.1 million, while non-GAAP EPS were calculated using diluted shares outstanding of 16.2 million shares. GAAP loss per share for the first quarter of 2005 was calculated using basic shares outstanding of 14.3 million shares, while non-GAAP EPS were calculated using diluted shares outstanding of 14.5 million shares.
Palm OS licensees reported shipping a total of approximately 1.2 million units during the quarter, of which 44 percent were smartphones or wireless handhelds and 56 percent were traditional PDA's and other mobile handheld devices. This compares to a total of approximately 1.4 million units shipped in the first quarter of fiscal 2005, of which 21 percent were smartphones and 79 percent were PDA's and other mobile handheld devices.
Due to the recently announced expected acquisition of PalmSource by ACCESS Co., Ltd., PalmSource will not be holding a quarterly earnings conference call.