Very strong sales of Treo boosted Palm's (NASDAQ:PALM) Q2/FY2005 revenues, which reached $444 million (£255m), and net income almost $261milion (£150m). However, net income reflects "the effect of a partial reversal of a deferred tax asset valuation allowance of $226.3 million". Take this fiscal trick in count, and the net income for Q2/2005 is $24.7 million. For Q3/FY2006, Palm expects revenues of $370-375m on GAAP basis (that's for 'Generally Accepted Accounting Principles', for those not in the know of the financial jargon).
Treo is a smartphone that plays in the yard of the very successfull toy from Research in Motion (Nasdaq: RIMM) Blackberry. 602000 Treos have been shipped, up 81 percent from the same quarter of 2004. Palm is expected to unveil new Treo smartphones (nicknamed 700w) in 2006. The new Treo will be based on Windows Mobile 5.0 and run on the Verizon Wireless EV-DO network. Palm is very proud of its "converged" voice/data devices and claims it produces 80 pct of all best-selling PDAs in the US.
The new Treo?
“Achieving the eighth consecutive quarter of year-over-year double-digit revenue growth and growing our converged device market share to 36 per cent in the US are significant accomplishments,” said Ed Colligan, chief executive.
“We shipped more than one million Treo smartphones during the first half of fiscal year 2006, which is just shy of what we shipped in all of fiscal year 2005. With our strong market position and excellent execution, I have confidence in our long-term growth opportunity.” , he added.
That's good news, and we will keep you posted about the coming of the next wonderboy, "early" in 2006.
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