Palm aiming for growth despite Q2 losses

by Stevie Smith - Sep 18 2009, 15:00

Despite the Palm Pre’s considerable critical acclaim and its clear positive effect on Palm Inc’s turnover, the smartphone specialist has still posted its ninth consecutive fiscal loss.

Shouldering the burden of a poor second-quarter sales forecast, plummeting share value after a planned stock offering, and a preferred dividends payout, New York-based Palm Inc. finished Q2 with a loss of $164.5 million USD ($1.17 USD per share).

However, it’s not all bad news for Palm, which, despite posting a loss of only $41.9 million USD (39 cents per share) in the same period in 2008, the company posted a loss of just $13.6 million USD (10 cents per share) in this latest quarter.

“We’re making significant progress with Palm’s transformation, and our culture of innovation is stronger than ever,” commented Palm chief executive Jon Rubenstein regarding the company’s aspirations to secure sustained forward momentum.

“We’re launching more great Palm WebOS products with more carriers, and turning our sights toward growth,” he added.

While Palm’s Q2 revenue dropped by almost $300 million USD to a mere $68 million USD due to deferred revenue regarding devices such as the Pre, which carries the proprietary WebOS, AP reports that adjusted sales – including deferred Pre sales – climbed to $360 USD.

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