MILPITAS, Calif.-PalmOne Inc. reported a 5-percent increase in revenues to $271 million for its second fiscal quarter compared with the same quarter a year ago, as well as a decrease in income from $9.5 million a year ago to $2.6 million for the second quarter. The results are the first for the combined Palm and Handspring company, which sells the Treo smart phone.
PalmOne said that including discontinued operations, its net loss for the quarter was $4.1 million, up from the $3.5 million it reported a year ago.
“We’re pleased with our progress this quarter,” said Todd Bradley, the company’s president and chief executive officer. “Our fall launch was smooth, and our products immediately received broad and significant recognition. New business and consumer solutions helped us increase revenue, gain market share, improve inventory turns and achieve positive operating income.”
However, investors sent the company’s stock down almost 20 percent to about $2.87 per share on PalmOne’s poor future outlook.
In other PalmOne news, the company’s now-separated operating system business, PalmSource, said it has begun to work with Research In Motion Ltd. to ensure Palm OS-based devices can connect to RIM’s BlackBerry servers. The companies, which previously announced their intention to work together, said the new software will be available in the second half of next year.
