PalmSource Inc.’s results for the first quarter fiscal year 2005 show increased revenues, much-improved net losses and growing smart-phone shipments.
The company recorded revenues of $18.2 million compared with $17.1 million last year. Net loss was $200,000, or 1 cent per share, compared with a net loss of $3.8 million, or 38 cents per share, last year. The company reported a cash use of $12.2 million and said at the end of the quarter its cash, cash equivalents and investments amounted to $76.6 million. PalmSource also said it achieved positive cash flow of $1.7 million from operations.
In all, Palm OS licensees shipped 1.4 million Palm-powered devices. Of those, 74 percent were handhelds, 21 percent were smart phones and 5 percent were other devices. A year ago, 1.2 million units shipped with 90 percent being handhelds, 7 percent smart phones and 3 percent other.
“In Q1, we saw a continued increase in the percentage of units and revenues from smart phones as a percentage of our total units and revenues,” said David Nagel, PalmSource’s chief executive officer. “This is a continuation of the trend we have seen in recent quarters. In Q1, FY05, as compared to the same quarter of the prior year, smart-phone royalties increased significantly and largely offset the decrease in royalties from the sale of handheld devices resulting from Sony’s withdrawal of the Clie handheld for markets outside Japan.”
For the second quarter, revenues are expected to be in the $18 million range.
