SUNNYVALE, Calif.-Palm Inc. posted sluggish sales and a lower-than-expected outlook, which prompted investors to drop the company’s stock in droves.
Palm’s share price tumbled more than 18 percent in trading after the company’s announcement to $28.65. Palm, however, sought to cast a positive spin on its earnings.
“We’re pleased with the company’s performance during the quarter,” said Ed Colligan, the company’s president and chief executive officer. “Treo smart phone sell-through was 470,000 units, which reflects an increase of more than 160 percent from the year-ago period. Our share in the handheld-computer market rose, and we’re excited about our overall product roadmap.”
Palm posted revenues of $342.2 million in its first quarter, up 25 percent from the year-ago period. The company’s net income dropped, however, from $19.6 million in the year-ago quarter to $18.2 million.
Further, Palm said it expects revenues of between $435 million and $440 million in its upcoming quarter. Analysts polled by Thomson Financial Network had expected $450 million.
