Palm (PALM) Q1 August 2009 Earnings Notes
Press Release
-non-GAAP Revenue $360.7 million (297.7M est.), gross margin 27.9%, EPS -10c (-24c est.)
-$211.8 million in cash, 45.1 million used in the quarter, $393 million debt
-guiding Q2 $240-$270 million (344.4M est.), FY 2010 $1.6-1.8 billion (1.57B est.)
-smartphone units 823K, +134% q/q -30% y/y. sell-through 810K
-16 million share secondary. Elevation Partners will buy $35 million
Conference call
-Pre is now $149.99 after rebates
-Bell Mobility in Canada, Telefonic in Europe
-Only WebOS devices going forward
-under contract with additional carriers to ship later this FY
-Treo Pro legacy device will ship for a few more quarters
-Margins will be lower next quarter due to lower volume
-Pre had a strong launch, now steady state sales
Net-net
-Pre had stronger launch than analysts expected, but it’s obvious sales slowed-down rapidly after the first month with the $149 price-cut and meager guidance
-Secondary helps liquidity, but when will the company ever make money vs. raising new funds repeatedly?