Q2 will be lift off...
Palm must be a strange place to work right now. Its losing money hand over fist yet is also about to debut a phone, nay a platform, many believe will not only revitalise its business but revolutionise the smartphone sector.
Backing up this Pre-or-die scenario are the release of the company’s official Q3 results which confirm the dreadful preliminary earnings announced earlier this month. Net losses are a whopping $95m, nearly double the $54.7m it lost during the same period last year and more than its entire Q3 revenue of $90.6m. Sales also collapsed totalling just 482,000 units compared to 833,000 a year ago.
“We’re proceeding through a challenging transitional period, however our current results shouldn’t overshadow the tremendous progress we’ve made against our strategic goals,” said Palm CEO Ed Colligan. “We’re poised to usher in a new era at Palm.” Essentially corporate speak for suck-it-up-we’re-about-to-come-out-swinging.
Colligan is right too, despite all this Palm stock has risen sharply since the announcement of the Pre in January. Shares once valued at $1.50 in December are now trading around the $8 mark. Furthermore, if the Q2 release date can be stuck to and enough Pres made to satisfy demand expect that number to skyrocket.
It is said that sometimes you need to hit rock bottom before things start to turn around. Believe it or not, Palm’s already off the canvass with gloves raised…