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palmOne 4Q Conference Call Highlights

palmOne just announced their most recent financial results for the 4Q of fiscal 2004. The company also holds a conference call which explains the numbers and brings out additional details and industry trends.

palmOne FY Q4 2004 Results

Conference Call Highlights
Highlights from palmOne CEO, Todd Bradley's comments:

  • The company is now "solidly profitable" and they have an outlook of accelerated growth and sustained profitability going forward.
  • FY Q4 2004 Net Income was $13.3 million, or $0.27 a share. This compares to a net loss for the fourth quarter of fiscal year 2003 of $15.0 million or $0.51 per share and net loss for the third quarter of fiscal year 2004 of $9.3 million or $0.20 per share.
  • Two key trends are now emerging in the handheld industry. 1) the emerging ubiquity of high speed wireless networks and 2) the vast and rapidly growing amount of digital and portable content.
  • palmOne is developing a family of smartphones
  • palmOne is the only smartphone company able to capitalize on converting a large base of existing users and customers from PDAs to Smartphones
  • The company announced 2 new GPS bundles this quarter. GPS is extremely popular in europe and is poised to grow in the US. 45 thousand palmOne handheld and GPS bundles were sold in Europe last quarter.
  • palmOne's handheld market-share is now 60% in the US and 40% in Europe
  • Email is the key application driving Treo smartphone growth and sales
  • 1400 enterprise companies have currently deployed the GoodLink solution on Treo 600 devices
  • The company has taken steps to secure new component suppliers for the Treo 600
  • Handhelds and Smartphone divisions have now been consolidated under Ed Colligan
  • Demand for the Treo 600 remains strong, and continues to outpace supply
  • palmOne is working to exploit the opportunity made by Sony's withdraw from the market.

Comments from Interim CFO, Phillippe Morali:

  • The company achieved or exceeded all key financial goals in Q4
  • Handhelds accounted for $192 million in revenue on 956 million units sold
  • The Tungsten E was the largest seller in the US, followed by the Zire 72 and the Zire 31
  • Smartphones accounted for $75.4 million of revenue, 151,000 Treo 600 units were sold and demand continues to outpace supply
  • 60% of all Treo sales were in the US
  • palmOne expects to sell between 250-260 thousand Treos during the next quarter.
  • Currently, handhelds make up 72% of revenue, while smartphones account for 28%. palmOne expects that figure to change to a 50-50 split in FY 2005

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Tungsten E High Seller

HiWire @ 6/22/2004 9:35:14 AM #
I found it interesting that the Tungsten E is such a hot seller... I guess Palm finally got lucky in giving the market what they wanted: an upgraded Palm Vx format.

And I don't think constantly calling doom upon PalmOne or PalmSource is a productive endeavour here.

Palm m505 User

The people who short aren't the ones losing money

JarJar @ 6/22/2004 11:50:18 AM #
Those of us who have bought stock long over the years are the one's who have lost money.

Yes I have owned stock. Even in the days when Palm stock was rising, I was one of the few who criticized management for their short-sightedness and desire to play corporate games instead of focussing on the product.

"Facey" (or whatever you call him) is correct in some of his observations.

HOLY COW!

Mr T @ 6/22/2004 12:52:51 PM #
Palmone stock has gone bananas!

PALMONE INC (NasdaqNM:PLMO) Quote data by Reuters

Last Trade: 29.93
Trade Time: 12:25PM ET
Change: +8.47 (+39.47%)
Prev Close: 21.46

I'm impressed.

Good for PalmSource too...
rsc1000 @ 6/22/2004 1:43:58 PM #
Yahoo article called 'PalmOne shares jump 40 % on rosy profit outlook':


http://biz.yahoo.com/rc/040622/tech_palmone_stocks_1.html

from the article:

"PalmOne has delivered on recent promises, and looks to be entering a period of sustainable profitability, warranting attention by investors that have previously shunned the stock," said J.P. Morgan analyst Paul Coster, in a note to clients."

and...

"Shares of PalmSource, which supplies the operating system software that powers palmOne's devices, also rose on Tuesday. The stock rose $2.02, to $17.32, up some 13 percent."



RE: HOLY COW!
rsc1000 @ 6/22/2004 1:43:58 PM #
Its also the 'Hotpick' sotck on CNNMoney:

http://money.cnn.com/index.html?cnn=yes

...under 'top stories'

RE: HOLY COW!
rsc1000 @ 6/22/2004 1:57:12 PM #
you get the point - but i can't help myself - good news in palm land for a change. this is from The Globe And Mail (national cdn paper) today:

PalmOne is a “turnaround story and a potential dynamic near-term grower,” said Caris & Co. analyst Darcy Travlos.

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