By Lisa Johnston
New products on display at the American International Toy Fair, held in N
PalmSource, the company behind Palm OS, an operating system powering mobile information devices, reported a 13 percent increase in revenue for its fiscal second quarter, climbing to $16.8 million, compared with $14.8 million in the year-ago period.
The company increased its net loss for the three months, ended Nov. 28, reaching $9.1 million, up from an $8.3 million loss in the same quarter in its previous fiscal year.
Excluding the effect of charges relating to the spin-off of PalmSource from PalmOne last year, net loss for the second quarter declined by 95 percent, to $300,000, compared with a $6 million loss in the same quarter a year earlier.
During the second quarter, PalmSource was spun out from PalmOne and launched as an independent public company, with the mission of powering the next generation of smart mobile devices. The company said units shipped dropped by 10 percent in the second quarter, down to 1.3 million.
In the second quarter, PalmSource licensing and royalty revenue jumped 14 percent, hitting $15.5 million, up from $13.6 million year-on-year. Gross margin percentage improved from 81 percent to 94 percent.
For the six months, PalmSource revenue increased to $34 million, up from $30 million in the first half of the previous fiscal year. Net loss dropped to $12.9 million for the first six months, down from a loss of $19 million in the same period a year ago.
Licensing and royalty revenue climbed to $20.6 million in the first half, up from $19.5 million in the same period year-over-year.
Excluding charges relating to the PalmOne deal, the company's net loss in the first half came in at $1.8 million, down substantially from the $15.5 million loss recorded in the same six months the previous year.
PalmSource is looking for revenue in the range of $21 million, plus or minus 5 percent, in its fiscal third quarter. The company expects to report somewhere between a net loss of $2 million to break even for the same period, and, excluding charges, should attain third-quarter net income ranging from $1 million to $3 million.
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