PalmSource Reports Slight Net Loss

Hey, nothing good can last forever, right? Well it is not like their entire business is hurting here. While this is some pretty gloomy news for PalmSource, I am sure that they can make a decent recovery.

PalmSource today announced consolidated results for its third fiscal quarter ended February 25, 2005. The company reported a small net loss on lower sales of mobile devices compared to the same quarter last year.

Consolidated results for the quarter included one month of financial results for China MobileSoft Ltd. (CMS), which was acquired on January 28, 2005.

PalmSource licensees reported shipping a total of approximately 1.4 million units, of which 23 percent were smartphones and 77 percent were PDA’s and other mobile handheld devices. This compares to a total of approximately 2.0 million units shipped in the third quarter of fiscal 2004, of which 12 percent were smartphones and 88 percent were PDA’s and other mobile handheld devices. Also during the third quarter of 2005, as reported by its licensees, CMS applications were shipped on approximately 1 million feature and voice phones into the Chinese market.

Consolidated revenue for the third quarter of 2005 was $17.2 million as compared to $21.6 million reported in the year ago quarter. Gross margin was 93 percent and was flat when compared to the year ago quarter. GAAP net loss was ($0.7) million, or ($0.05) per share, as compared to GAAP net income of $0.6 million or $0.05 per share reported in the year ago quarter. [Read the rest]