By Richard Shim, 19 March 2004 10:30
NEWS Handheld operating system company PalmSource reported revenue and earnings that were down significantly for its third quarter, when compared with a year ago.
The company saw revenue drop by 18 per cent for the quarter ending 27 February, 2004. Revenue came in at $21.6m compared with $26.3m in the same period a year ago. The company reported earnings of $597,000, or 5 cents a share, compared with $734,000, or 7 cents a share, the same period a year ago.
The company has $33.3m in cash and cash equivalents and used $2.2m during the quarter.
On Thursday, PalmSource shares rose $1.49, or 7 per cent, to close at $21.91. After-hours trading saw shares fall $1.91, or nearly 9 per cent, to $20.
The company said in a statement that it expects revenue in the fourth quarter to be around $17m, with cash for operations in the $4m-to-$6m range.
PalmSource is focusing its OS efforts on smart phones, which analysts say have already begun to take customers away from handhelds.
To respond to that expected phone handset growth, PalmSource has developed two operating systems, Cobalt and Garnet, which were introduced in February. Cobalt adds features such as the ability to more easily switch between wireless networks, improved security and an enhanced capacity to open several programs at once. Garnet is based on Palm OS 5 and will target handhelds and entry-level handsets.
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