Palm Reports Record Revenue

Palm, Inc. just reported record revenue of $522.2 million in its second quarter, up 102% from the $258.6 million generated in the second quarter of last year. Net income for the quarter was $20.3 million, or 4 cents per share, as predicted by most analysts.

Palm shipped more than 2.1 million handhelds in the second quarter of its fiscal 2001, an increase of 45% over the previous quarter. The number of handhelds shipped by Palm to date totals nearly 10.9 million.

Palm has now had four quarters in a row that revenue grown has been more than 100%. Palm's CEO Carl Yankowski, said, "Strong overall demand in the United States and the international markets for Palm branded handheld products, add-ons, accessories and services together with solid supply chain management enabled us to reach a $2 billion a year sales run-rate during our first year as an independent public company."

Net income for the first six months of fiscal 2001 was $37.5 million, or 7 cents per share, a noticeable increase over the $22.5 million, or 4 cents per share for the first six months of fiscal 2000.

As part of continuing its proof that very little that happens on the stock market makes any sense, Palm's stock lost $5.50 today, a 12.61% loss, down to $38.12.

"I don't think it's Palm specific,'' said Sanford Bernstein and Co. analyst Paul Sagawa of investors' negative reaction. "I think it's much more indicative of the general sentiment of high-valued stocks and the general downdraft on tech issues on the Nasdaq.''

An interesting question, and one that we still don't have the answer to, is exactly how Palm earned this revenue. To predict the future health of the company, many analysts are looking to see whether Palm is actually making any money by licencing its OS. Until now, Palm has made 99% of it revenue from hardware sales but the company predicts that in the future licencing and Palm.Net will be a larger part of their bottom line.

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New palm unit being announced...

I.M. Anonymous @ 12/21/2000 12:30:58 AM #
Wonder when they will "announce" the unit but hey whatever.

Palm m105.

Basically its going to be a IIIXE in the m100 casing minus 1 thing - Flash ROM.

Yes, thats right you heard me. The m105 will have 8MB of memory, come with a Mail application this time around and come with a cradle. It will also come with the other software you have come to expect from Palm when buying a new unit (AOL Mail etc etc).

The other kicker is its going to be also coming with the Mobile Internet Kit software.

MSRP is going to be $199 right now. Product is going to be launched March 6th, 2001.

This is also going to be the first unit that will official be branded with Palms new "Warranty Technical Support" policy. 90 days after date of purchase, if you call in for technical support you will pay $15 before receiving any form of support. Non warranty servicing/replacement of the unit will be $75 versus the "norm" of $100 it has been for the last few years. This "Warranty Technical Support" policy will be translating onto all other units as well soon.

Oh yah, an PS. Palm Desktop 4.0 for Windows PC's will be released in the next few weeks. It looks pretty snazzy.

Anonymous Palm Technical Support Employee

PS Why am I blabbing this? Because I disagree heartedly with Palms technical support policy change.

RE: New palm unit being announced...
Ed @ 12/22/2000 9:05:53 AM #
This is a Palm version I've been expecting for a while. While the m100 has been a bigger hit than many expected, it is still very limited by its 2MB. Bumping this up will get the m series the respect it deserves. I'm assuming this is going to come out running OS 4, so its lack of flash ROM isn't that much of a big deal.

Considering the only time I ever used Palm tech support it took them 3 months to tell me anything, which was two months after I had returned the unit, I'm not thrilled by having to pay for it. On the other hand, I could live with paying $15 for tech support if it was good. For most hardware companies tech support is a big drain on the bottom line so there is a lot of incentive to pay it lip service but not really provide any real help. If paying a few bucks in order to get the answer I need quickly and accurately is what it takes, I can accept that. TANSTAAFL.

BTW, thanks for the heads up.

Palm Infocenter



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