Palm announced their earnings for the past quarter, which is their first quarter of fiscal year 2010 ending August 28th.
The total revenues have been $68m resulting in gross profit of $2.8m. These results include the effects of subscription accounting applied to Palm webOS products as required by GAAP. In accordance with this methodology, revenues and direct cost of revenues for Palm webOS products (currently Palm Pre smartphone) are deferred and recognized over the product's estimated economic life.
Non-GAAP Adjusted Revenues in the first quarter totaled $360.7 million, non-GAAP Adjusted Gross Profit was $100.6 million and non-GAAP Adjusted Gross Margin was 27.9 percent.
This is all just a lot of number mumbo jumbo. They only thing I am interested in is the number of Palm Pre phones sold. Palm hides this number in announcing only the overall shipment of smartphones, which have been 823,000 for the last quarter. This is representing a 134% increase from the fourth quarter of fiscal year 2009 and a year-over-year decrease of 30%.
I guess the problem for Palm is that Palm Pre is doing ok, but is not even close to what the Apple iPhone is selling through. Remember that the iPhone 3GS sold 1 million in the first 3 days of its launch.
Palm is not Apple despite the initial hype. Palm has still a long way to go to compete with the iPhone and its huge iTunes Media and App eco system.
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