PALM: As anticipated, they are finding it tough and marketing spend will have to be ramped up
The 2nd quarter earnings announcement from Palm was clearly disappointing and hardly supportive of the lofty valuation assigned to the business
Palm posted non-GAAP revenue of $302m, beating the Street at $266.2m and ahead of guidance – discount drive? The company shipped 783,000 smartphones in the quarter, down 5% from Q1, but up 41% from a year ago. Sell-through in the quarter was 573,000 units, down 29% from Q1, and off 4% year over year. The company posted a non-GAAP loss for the quarter of 37 cents a share, five cents worse than expected. Sales on a GAAP basis, which reflect subscription accounting for its smartphones, was $78.1m. No detail of unit sales of the Palm or Pixi. Palm said on…