PalmOne exceeded analyst's expectations of a 13 cent profit for Q4, reporting a 27 cent profit for the fourth quarter ending May 28th. Their stock rose $1.11, or 5.45% during normal trading hours today. Currently, PalmOne is up another $4.75, or 22.13% in after hours trading.
Revenue was up 23%, gross margins were up 6%, and in total they shipped 1.1 million Palm devices in the quarter, and approximately 4.1 million devices during fiscal year 2004 -- bringing the total number of devices shipped to-date by palmOne to more than 26.4 million.
Full details on their quarter are below. We will update this story later tonight with information from the conference call.
PalmOne reported a profitable fourth quarter of fiscal year 2004, ended May 28, with revenue totaling $267.3 million, up 23 percent from the $217.1 million reported during the comparable quarter a year ago, and up 10 percent sequentially.
Net income was $13.3 million, or $0.27 per share. This compares to a net loss for the fourth quarter of fiscal year 2003 of $15.0 million or $0.51 per share and net loss for the third quarter of fiscal year 2004 of $9.3 million or $0.20 per share.
Net income in the fourth fiscal quarter, measured on a non-GAAP(1) basis, totaled $15.9 million, or $0.32 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges. This compares to a non-GAAP net loss in the fourth quarter of fiscal year 2003 of $8.2 million, or $0.28 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation, restructuring charges and loss from discontinued operations. Non-GAAP net income in the third quarter of fiscal year 2004 was $0.6 million, or $0.01 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges.
"We achieved profitability for the quarter, and demand remains strong for our handheld and smartphone products," said Todd Bradley, palmOne chief executive officer. "We ended fiscal year 2004 with very good results across virtually every key financial metric, and we enter fiscal year 2005 with an optimistic outlook for accelerating growth and increasing profitability."
Bradley noted the following operational highlights:
-- Revenue grew 23 percent year-over-year, marking the fourth consecutive
quarter of year-over-year growth;
-- Gross margin rose to 30.5 percent, compared to 28.9 percent last
quarter and 26.5 percent in the year-ago quarter;
-- Operating expenses were reduced year-over-year and sequentially;
-- Operating margin was 6.0 percent, and non-GAAP operating margin was 7.0
-- Net income was $13.3 million, and non-GAAP net income totaled $15.9
-- The company generated positive cash flow of $12.5 million during the
quarter, including $6.4 million from continuing operations.
Fiscal Year 2004 Results and Unit Shipments
Revenue for the full fiscal year 2004 was $949.7 million, up 13 percent from the $837.6 million reported in fiscal year 2003. Loss from continuing operations for fiscal year 2004 was $10.2 million, or $0.26 per share, compared with a loss from continuing operations of $417.9 million, or $14.38 per share, for fiscal year 2003. Non-GAAP income from continuing operations for fiscal year 2004 -- excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges -- was $8.0 million, or $0.19 per share. That compares with a fiscal year 2003 non- GAAP loss from continuing operations -- excluding the effects of amortization of intangible assets and deferred stock-based compensation, impairment charges, restructuring charges and the change in the valuation allowance for deferred tax assets -- of $55.6 million, or $1.91 per share.