Palm's loss smaller than expected, sales strong

By @ibtimes on

Palm Inc reported a smaller-than-expected loss on strong smartphone sales, sending its shares 6 percent higher on Thursday.

The maker of the Pre smartphone reported a net loss applicable to common stockholders of $164.5 million, or $1.17 a share, in its fiscal first quarter ended August 31, versus a year-ago loss of $41.9 million, or 39 cents a share.

Excluding items, the company posted a loss of 10 cents a share, beating analysts' average estimate of 25 cents according to Reuters Estimates.

Revenue slid more than 80 percent to $68 million. But on a non-GAAP basis, revenue came in at $360.7 million versus Wall Street's average forecast of $289.1 million.

We're making significant progress with Palm's transformation, Chief Executive Jon Rubinstein said in a statement.

Palm's shares have more than quadrupled this year.

Separately, Palm said it plans to sell 16 million shares of common stock. Elevation Partners, which already owns a sizable stake in Palm, expects to buy $35 million worth of stock in the offering, Palm said.

The Sunnyvale, California-based company's stock closed at $14.44 on Nasdaq and rose to $15.30 in extended trading.

(Reporting by Gabriel Madway; Editing by Richard Chang)

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