In its first quarterly financial report since going public, handheld device maker Palm reported strong revenue growth for its third quarter, ending February 25.
Palm had net income of $US10.95 million, or 2 cents per share, up 66 per cent over the $6.6 million in net income the company earned in its third fiscal quarter of 1999, Palm said in a statement.
Palm had third-quarter sales of $272.3 million, up 116 per cent from the same quarter last year when sales were $125.9 million.
Palm's earnings beat the 1 cent per share predicted by analysts polled by First Call/Thomson Financial.
Palm's strength comes from the "tremendous flexibility and acceptance" of the Palm operating system, and the fact that the company addresses large, growing and interrelated markets, Palm's CEO, Carl Yankowski, said in the statement.
Palm, formerly a wholly owned subsidiary of 3Com, was spun off into its own company at the beginning of this month with an initial public offering price of $US38. The stock closed yesterday at $54.81 on the Nasdaq exchange.
Palm's IPO netted the company $1.17 billion on 26.5 million shares as well as the concurrent private purchases of 5.9 million shares to its strategic partners, America Online (AOL), Motorola and Nokia. Internet service provider AOL and Finnish mobile phone maker Nokia both purchased 2.1 million Palm shares, while Motorola took 1.7 million shares.
3Com last week reported that its third-quarter revenue rose slightly, reaching $1.42 billion for the period ended February 25 compared to $1.41 billion for the same period a year earlier. Excluding one-time charges, 3Com reported net income of $97.4 million for the quarter compared to $89.6 million a year earlier.