Palm Reports Q1 FY07 Results
Palm today reported revenue of $355.8 million in the first quarter of fiscal year 2007, ended Sept. 1, up 4 percent from the year-ago period. Operating income rose 28 percent from the year-ago period.
Net income in the fiscal quarter totaled $16.5 million, or $0.16 per diluted share. Net income included stock-based compensation expense of $6.7 million and amortization of intangible assets of $0.3 million. This is the first quarter in which Palm implemented SFAS 123R, which includes the expensing of stock options, restricted stock and the company's employee stock purchase plan in GAAP results. This compares to net income for the first quarter of fiscal year 2006 of $18.2 million, or $0.18 per diluted share.
Net income for the quarter, on a non-GAAP basis, totaled $21.5 million, or $0.21 per diluted share, excluding stock-based compensation expense and amortization of intangible assets, and adjusting the income-tax provision to 40 percent. This compares to non-GAAP net income in the first quarter of fiscal year 2006 of $13.7 million, or $0.13 per diluted share, excluding amortization of intangible assets and deferred stock-based compensation and adjusting the income tax provision to 40 percent.
"We executed well on a number of fronts, significantly increasing profits and Treo sell-through," said Ed Colligan, Palm president and chief executive officer. "The product announcements we made this month put us in an even better position to meet marketplace demands and extend our worldwide reach."
In a related news release issued today, the company announced that it has received approval from its board of directors to repurchase up to $250 million worth of Palm shares outstanding.
Second Quarter Fiscal Year 2007 Outlook
Based on current trends, Palm provided its outlook for financial results in the second quarter of fiscal year 2007, which ends Dec. 1. The company expects the following:
- Revenue to be in the range of $430 million to $450 million;
- Gross margin to be between 33.3 percent and 33.8 percent on a GAAP basis and between 33.5 percent and 34.0 percent on a non-GAAP basis;
- Operating expenses to be between $121 million and $124 million on a GAAP basis and between $115 million and $118 million on a non-GAAP basis;
- The tax rate on a GAAP basis to be 42.5 percent and, on a non-GAAP basis, 40 percent;
- Earnings per diluted share to be between $0.15 and $0.18 on a GAAP basis and between $0.20 and $0.23 on a non-GAAP basis; and
- SFAS 123R stock-based compensation expense, before taxes, to be between $6.5 million and $7.0 million and amortization of intangible assets to be $0.3 million. These amounts and the related income tax amounts are excluded from Palm's second quarter of fiscal year 2007 outlook on a non-GAAP basis.
For the remainder of the year, Palm said it will balance top-line growth and market share over profitability. In view of dynamic market conditions, including Palm's launch of new products and expansion into new geographies, the company is not reaffirming previous annual guidance at this time, and is providing guidance only for the second quarter.
Source: Palm Inc Press Release
Article Comments(9 comments)
- RE: Don't we have this already? -Tuckermaclain
- RE: Palm brand will return in 2018, with devices built by TCL -richf
- RE: Palm brand will return in 2018, with devices built by TCL -dmitrygr
- Palm phone on HDblog -palmato
- Palm PVG100 -hgoldner
- RE: Like Deja Vu -PacManFoo
- Like Deja Vu -T_W
- RE: Don't we have this already? -richf