Palm Inc (NASDAQ:PALM) - we warned you back in October 2009!
We told you back in October 2009 that, in what is becoming a saturated market, Palm (NASDAQ:PALM) will surely struggle to compete, lacking the financial muscle and killer product (the Pre is not that product!) to build a sustainable position; the latest numbers bears this out!
Chairman and Chief Executive officer Jon Rubinstein’s commented that “the potential for Palm remains strong,”; we are not so sure! The product offering simply isn’t attractive in what is a rapidly changing market dominated by some cash rich goliaths. The differentiated platform in webOS is a selling point but we aren’t convinced it will provide the “considerable—and growing – advantage” that Mr Rubinstein suggests.
For the quarter ended 28th February Palm reported a loss of $18.5 million, or 13 cents a share, compared with a year-earlier loss of $95 million, or 89 cents a share. The adjusted loss per share narrowed to 61 cents from 86 cents with consensus approximately 42 cents a share – so a big miss! Revenue nearly quadrupled to $349.9 million. Including amounts deferred related to Palm webOS units, revenue was $366 million.
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