Palm Posts Loss, But Beats Expectations
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Smartphone maker Palm (NASDAQ: PALM) posted a narrower-than-expected quarterly loss on Thursday, sending its shares up more than 14 percent.
The results come as the company's turnaround effort, led by the just-unveiled Pre handset, picks up steam. The device, which was launched at the beginning of June, has been well-received by reviewers and saw strong demand in the weeks following the release.
The Pre's impact will be more fully reflected in the current quarter, because of its June launch date. Analysts estimate around 150,000 units have shipped so far.
"Such significant growth means there is room for three to five players to win in this space. We don't have to beat each other to prosper," Jon Rubinstein, Palm's new chief executive, said on a conference call with analysts.
Palm posted a net loss applicable to common shareholders of $105 million, or 78 cents a share, in the fiscal fourth-quarter ended May 29, compared with a loss of $43.4 million, or 40 cents a share, in the year-ago period.
Excluding items, Palm's loss was 40 cents a share, compared with an average analyst estimate of 65 cents a share, according to Reuters Estimates.
Revenue fell more than 70 percent to $86.8 million, compared with a Wall Street estimate of $80.3 million.
The company's shares closed at $14.02 on the NASDAQ and were up to $16.07 in extended trading. The company's shares have more than quadrupled this year.