palmOne Revenue Rises 23% in Q4

By Jeff Malester On Jul 12 2004 - 6:00am

Strong demand for its handheld and smartphone products — namely the Treo 600 combination mobile phone and digital organizer — helped palmOne move into the black during its fiscal fourth quarter.

Net income hit $13.3 million for the three months, compared with a loss of $15 million in the year-ago period.

The handheld computer and communications hardware and software solutions company increased its fourth quarter revenue 23 percent, reaching $267.3 million, up from $217.1 million in the same period a year earlier.

Excluding the effects of certain deferred compensation and charges, net income in the period, ended May 31, climbed to $15.9 million, compared with a loss of $8.2 million in the same three months in 2003, excluding the effects of restructuring charges and loss from discontinued operations.

Gross margin in the fourth quarter increased to 30.5 percent, up from 26.5 percent in the year-ago three months, while operating expenses were reduced year-over-year.

Revenue for the fiscal year reached $949.7 million, up 13 percent from the $837.6 million reported in the previous 12 months.

The net loss for the 12 months was reduced to $21.8 million, down from a loss of $442.6 million year-on-year. Excluding the effects of charges, net income for the 12 months hit $8 million, compared with a loss of $55.6 million year-over-year, also excluding the effects of charges.