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palmOne Q2 Revenue Rises 5%

12/23/2003 08:39:00 AM Eastern

Milpitas, Calif. - PDA maker palmOne, which is made up of the former Palm Solutions Group and Handspring, recorded a 5 percent revenue increase for its fiscal second quarter, reaching $271.2 million, up from $257.9 million in the year-ago period.

The palmOne financial numbers include effects of the late October spin-off of PalmSource and acquisition of Handspring. Therefore, palmOne results have two months of PalmSource results included in discontinued operations and one month of Handspring results included in income from continuing operations.

For the second quarter, ended Nov. 30, palmOne income from continuing operations hit $2.6 million, compared with $9.5 million in the same three months in 2002. Including discontinued operations, net loss for the second quarter was $4.1 million, compared with net income of $3.5 million in the same period a year earlier.

Gross margin for the second quarter was reported as 'stable,' coming in at 27.1 percent, while average selling price climbed to $172, up from $160. Selling expenses climbed marginally, to $68 million in the second quarter, compared with $66 million year on year.

During the second quarter, palmOne sold 1.4 million handheld computing and communications solutions, bringing the total number sold to 24.4 million.

For the six months, palmOne revenue increased to $439.8 million, up from $422.6 million.

The company substantially reduced its loss from continuing operations in the first half, down to $14.2 million, compared with a $241.8 million loss in the first six months of the previous fiscal year.

The net loss was also dramatically reduced, down to $25.9 million in the six months, compared with a loss of $255.2 million in the same period a year earlier.