Palm, Inc. (NASDAQ:
PALM)
is scheduled to release its Q4 2010 results after the market closes on June 22, 2010. PALM preannounced revenue of $90-100M for the May-Q and an alarming ending cash position in the $350-400M range, down from $590M last quarter, although roughly $150m of that $590 was in extended working capital that had to be paid out quickly.
Palm, Inc., a leader in mobile computing, strives to put the power of computing in people''s hands so they can access and share their most important information. The company''s products include smartphones, under the Treo brand; mobile managers, under the LifeDrive brand; handheld computers, under the Tungsten and Zire brands; as well as software and accessories. Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores.
As for the Q3 of 2010, total revenues on a GAAP basis were $349.9 million. Gross profit and gross margin on a GAAP basis were $47.0 million and 13.4 percent, respectively. Non-GAAP Adjusted Revenues in the third quarter totaled $366.0 million, and non-GAAP Adjusted Gross Profit was $63.5 million. Non-GAAP Adjusted Gross Margin was 17.3 percent and was impacted by a $45.3 million charge taken in the quarter for reserves for inventory purchase commitments, which exceed current forecasted demand. Excluding the impact of the inventory purchase commitment reserves, non-GAAP Adjusted Gross Margin in the third quarter would have been 29.7 percent. On a GAAP basis, net loss attributable to common stockholders for the third quarter of fiscal year 2010 was $(22.0) million, or $(0.13) per diluted common share. This compares to a net loss attributable to common stockholders for the second quarter of fiscal year 2010 of $(13.7) million, or $(0.09) per diluted share, and to a net loss attributable to common stockholders for the third quarter of fiscal year 2009 of $(98.0) million, or $(0.89) per diluted common share.
Analysts' estimates for Q4 2010 range from a low of $-0.90 to a high of $-0.43, compared to a consensus estimate of $-0.71, with number of estimates being 18 and the co-efficient variance -17.18. Revenue estimate has decreased to $95M from $145M and cash burn increased to $221M from $148M previously for an ending cash position of $371M at the end of the May-Q
The stock closed at $5.69, up +0.18% on June 21, 2010 and most analysts' recommend holding the stock with an average price target of $5.70.
