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Palm FY09 shipments down 25%, $753m net loss

updated 05:50 pm EDT, Thu June 25, 2009

Palm Q4FY09 dicslosure

Palm on Thursday disclosed its fourth-quarter and fiscal-year 2009 results, indicating a $753 million net loss for the year. Smartphone sales continued to slide, with shipments down 62-percent for the quarter and 25-percent for the year. The Palm Pre was not included in the numbers, as the launch will instead serve as a starting point for the company's first quarter of FY10.

Despite the lackluster financial information for the quarter, the loss was narrower than expected and Palm remains optimistic that webOS and the Pre will turn the company around. "We have now officially reentered the race," said Jon Rubinstein, chairman and CEO.

The CEO provided additional insight during a conference call for investors. The ramp-up is "going very smoothly" and the supply chain is as efficient as possible so far. Regarding licensing webOS to other manufacturers, Rubinstein suggests it is "not a religious issue," but the company does not yet have any formal plans.

Although demand for Pre appears to be gaining strength, the device still faces tough competition in the smartphone market. Analysts estimate the company sold approximately 50,000 units on the launch day, while Apple pushed one million iPhone 3G S handsets in the first three days. Sprint CFO Bob Brust expects Pre shortages to continue, although the carrier is getting new shipments every week.



By Electronista Staff
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  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008

    +1

    Loss

    A loss is a loss, of course, of course. Yep the blip in stock is because they loss, but its not as much as expected. Yet its still a loss for how many quarters straight now? Seems to me that the Pre will not help much next quarter.

  1. JeffHarris

    Fresh-Faced Recruit

    Joined: Oct 1999

    0

    Dead in the Water

    Palm hasn't released a truly compelling product in nearly 10 years.

    Handspring was whipping Palm and Sony was showing BOTH how to make superior Palm OS devices with great industrial design and better features.

    Meanwhile, Palm had done next to NOTHING with their OS since Palm OS 3. Sorry Palm, but adding color capability and stirring in a few bug fixes does NOT make a full x.0 system upgrade! Palm OS 4 added little and Palm 5 added little more. Their OS 6 or Jasper (or whatever the code name was) never materialized.

    Sure, Microsoft has gotten away with c*** like that for years... it's amazing what monopoly power, theft and coercion can do... but you actually had some great technology at one point!

    Palm started out as great, innovative company, but along the way, it turned into some investors' hot potato, being sold, acquired, re-sold, restructured, etc., whatever and whatever it was killed Palm.

    Maybe Dell, in their fundamental me-too-ness, will buy Palm and both will be dragged down into well-deserved oblivion.

    The Palm Pre has some good things going for it, but it's a case me-too little, too late!

    (I was a Palm user from 1997 until I got an iPod touch a few months ago. The Palm death spiral has been long, slow and painful to watch!)

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