Palm (PALM) November 2009 Q2 Earnings Notes
-earnings -37c vs. -32c est. revenue $302M vs. $266M est.
-new WebOS update at CES, Pixi will be faster. >800 apps
-investing heavily in marketing
-Q2 ASP $375 vs. Q1 $427
-80% of sell-through was WebOS devices
-lower than expected sales at Sprint
-Will dramatically ramp TV ads with new marketing campaign later this quarter
-gross margin mid/upper 20s second half of fiscal year
-will use over $80M in cashflow from ops in Q3. 360M secondary in September
-second half additional carriers revenue should be up q/q
-still expect revenue to be $1.6-1.8B for year
Q&A
-SG&A to increase sequentially next 2 quarters
-foundation of guidance is 2H-FY launch commitments
-”priority” is to gross installed base. hard to project ASP as it depends on mix
-small family of really great products
-gross margins go up on higher revenue numbers
-tens of thousands of SDK downloads. haven’t fully opened developer program yet
-2 year roadmap of products. gotten great feedback from carrier partners on that roadmap
-nothing to do with price war between Amazon and Walmart. very small % goes through those online channels
Net-net
-analysts are really worried about new Google Android product launches
-80M cash burn in Q3. enough said