Palm sold 750,000 Treo smartphones during the quarter, up 43% from a year ago.
However, yesterday it warned that Treo sales may stall in the current quarter as a result of the launch of Apple’s iPhone today.
The company last month agreed to sell a 25% stake to private-equity firm Elevation Partners, as part of its bid to compete against larger rivals, including Research in Motion, which posted stellar earnings yesterday.
Sunnyvale, California-based Palm earned $15.4m, or 15 cents a share, for its recent quarter, which ended June 1. That’s down from $27.2m, or 25 cents, a year ago. Revenue also fell, to $401m from $403m last year.
Looking ahead, Palm predicted revenue of between $355m and $365m for the current quarter, the first of its fiscal 2008.
Shares in the company fell more than 2.5% in after-hours trading to $16.12 on the Nasdaq.
Our View
Palm rival Research in Motion also posted its results yesterday – they were stellar, mostly thanks to a slew of new BlackBerry releases. Palm has been slower to come out with new Treo models, in part because of its boardroom battles. To remain competitive, Palm will need to step up the introduction of new and better Treos.
