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Some Pre-Earnings Thoughts...
Palm will be announcing their Q2 FY2010 financial results on Thursday, Dec. 17, shortly after 4 p.m. Eastern (1 p.m. Pacific), followed by a conference call for the public at 4:30 p.m. Eastern (1:30 p.m. Pacific). The conference call will be hosted by Jon Rubinstein, chairman and chief executive officer, and Doug Jeffries, chief financial officer.
Research in Motion is also announcing on Thursday. In a pre-announcement story appearing in The Wall Street Journal, the focus was on how both companies may be showing sales gains, but can't make a dent in Apple's iPhone lead.
"While both Palm and RIM released new devices recently --RIM's Storm 2 in October and Palm's Pixi phone last month-- the companies continue to face pressure from the iPhone as well as new entrants like Motorola Inc.'s Droid device."
On Friday, a FierceWireless post stated:
"Palm, meanwhile, is expected to see a boost in revenue. The company's second phone based on its webOS platform, the Pixi, recently went on sale at Sprint Nextel, and its Pre smartphone began selling in Europe. The company is expected to post around $265.7 million in revenue, but likely will continue reporting losses."
On the positive side, a post by Digital Daily's John Paczkowski quoted MKM Partners analyst Tero Kuittinen, who said that "Palm's industry position is improving, and quickly too."
His three reasons for optimism, are as follows:
>> First,we are much more confident about Palm's chances to sell through Verizon and believe a Verizon relationship would mitigate the uncertainty of an AT&T relationship.
>> Second, Europe is shaping up better than we had anticipated, as Android is failing to get sufficient traction, and the Palm Pre is outselling key HTC and Motorola models in major markets like the U.K.
>> Third, Amazon and Wal-Mart are strongly supporting the Pre and Pixi, vindicating Palm's strategy of targeting the mass market, rather than tech enthusiasts.
PALM closed at $11.61 on Wednesday. Down $0.04.
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