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Palm Investor Relations Conference Call Recap - Treo Sales Up
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Posted by: WoNGsTeR

Palm Investor Relations Conference Call Recap - Treo Sales Up
Posted by Tadd Rosenfeld on June 29, 2007 04:04 PM
Treo and PalmOS news
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There was good news and bad news in yesterday's investor relations conference call by Palm. In the quarter ended June 1, 2007, Treo sales to end users reached 750 thousand units, an all time high, up a staggering 43% year over year. Also, the company earned more per Treo sold than in previous quarters thanks to streamlined manufacturing and reduced costs for raw goods. But Palm increased spending for research & development as well as marketing, and therefore had lower net income overall. Management also cautioned that Treo sales may decline next quarter by as much as $50 million due to the iPhone, which Apple is launching later today and may compete directly with the Treo.
Palm reported total revenue for the quarter of $401.3 million. Smartphone revenue was $344.2 million, up 14 percent from the year-ago period. Net income for the quarter was $15.4 million, or $0.15 per diluted share. This compared to net income for the fourth fiscal quarter of last year of $27.2 million, or $0.25 per diluted share.

"Our record Treo sell-through reflects strong fundamentals in the core focus areas of our business," said Ed Colligan, Palm president and chief executive officer. "In fiscal year 2007, we expanded our international presence, improved our product pipeline and developed strategic platform technologies. I'm confident that in fiscal year 2008 more and more standard handset customers will demand the capabilities and ease of use of Palm smartphones...."
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