Palm Reports Q2 FY09 Results
SUNNYVALE, Calif., Dec. 18, 2008 -- Palm, Inc. (NASDAQ: PALM) today reported that total revenue in the second quarter of fiscal year 2009, which ended Nov. 28, 2008, was $191.6 million. Smartphone sell-through for the quarter was 599,000 units, down 13 percent year over year. Smartphone revenue was $171.0 million, down 39 percent from the year-ago period.
“We’re working through an undeniably difficult period,” said Ed Colligan, Palm president and chief executive officer, “but near-term challenges shouldn’t overshadow the fact that we are on track to deliver a breakthrough new platform and products that will bring a truly differentiated smartphone experience to our customers and reestablish Palm as a leading innovator in the mobile industry.”
The second quarter of fiscal year 2009 net loss applicable to common shareholders included a non-cash charge with a net impact of $396.7 million to the tax provision pertaining to the increase of the valuation allowance for the Company’s U.S. deferred tax assets. This non-cash charge was the primary driver of a net loss applicable to common shareholders for the second quarter of fiscal year 2009 of $(508.6) million, or $(4.64) per diluted common share on a GAAP basis. The increase in the valuation allowance does not reflect a change in the company’s outlook, nor does it alter the company’s ability to utilize the underlying net operating loss carry forwards. “We have reserved against these assets in accordance with GAAP, however we still expect to utilize our net operating loss to offset future U.S. cash taxes once we become profitable,” said Andy Brown, chief financial officer.