Handheld device manufacturer PalmOne Inc has made an inauspicious start to life after the spin out of its software division PalmSource Inc. The company recorded a second-quarter 2004 net loss and admitted that its third quarter would incur a greater loss as restructuring charges hit home.
Milpitas, California-based PalmOne (formerly Palm Inc) reported a net loss of $4.1m for the second quarter to November 30 compared with a net profit of $3.5m a year ago. Revenue was up 5.2% at $271.2m year on year.
However, comparisons are difficult to make due to PalmOne’s October spin out of PalmSource and its parallel absorption of Handspring Inc. PalmOne’s results included two months of PalmSource’s trading and one month of Handspring results.
CFO Judy Bruner said during a conference call that PalmOne expects to report an adjusted loss of between $14m and $20m for its third quarter as the company restructures towards higher growth and higher margin products.
Handspring’s final quarter of independence before becoming part of PalmOne yielded a net loss of $13.9m for the three months ended September 27 on revenue of $13.1m, down from $54.1m a year earlier.
PalmOne’s revenue increase from the acquisition of Handspring was roughly countered by lost sales from the spin out of PalmSource. PalmSource reported revenue of $17.1m in its last full quarter as part of Palm Inc.
This article is based on material originally produced by ComputerWire.