(Associated Press via NewsEdge) Faced with tough new competition, Palm reported a sharp drop in its fiscal second-quarter profits and revenues but exceeded Wall Street's lowered expectations.
The maker of Treo smartphones said it earned $12.8 million, or $0.12 per share in the quarter ended December 1. That compared to $260.9 million, or $2.51 per share, in the year-ago period, which included a tax-related gain of $226.3 million.
Excluding stock-based compensation and one-time items, Palm said it would have earned $17.6 million.
Revenue fell nearly 12% to $392.9 million compared to $444.6 million in the year-ago period.
The Sunnyvale-based company had already lowered its targets in November down to $0.10 to $0.11 per share on revenue between $390 million and $395 million from an earlier projection of $430 million to $450 million.
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