“Palm’s woes continue to balloon after the handset maker announced its earnings for Q3 2010. As a recap, Palm reported $349 million in revenue with a $22 million net loss for Q3 2010 which looks rosy when compared to the $90.6 million revenue and $98 million net loss reported in Q3 2009. Though revenue has increased and net loss has narrowed year over year, Palm continues its downward slide with net loss increasing from $13.7 million in Q2 2010 to the $22 million quoted above. Palm shipped 960,000 handsets in Q3 2010 which represents a 23% increase from Q2 2010 and a 300% increase year over year. This abundance of handsets is Palm’s downfall as the handset maker revealed that it has only sold a mere 408,000 units in Q3 2010, leading to a standing inventory that some estimate to be a staggering 1.15 million. Palm has put handset production on hold (told you so) while carriers sell through the current inventory which is equal to six months worth of retail sales at last year’s rate. As a result, Palm’s Q4 2010 outlook is dire with the company projecting revenue of only $150 million, a figure that falls far short of the $305 million that was expected. Read on after the jump.”
I don’t know much about the stock market or company finances, but this news can’t be good for Palm. Looking at Palms stock history for the last 10 years shows a company that was doing amazing during the .COM boom, but fell apart not long after that and has been struggling ever since.
Looking at that graph, the value of the stock was once, $802 a share. That’s an amazing value. Now, it’s barely $4 a share, and that’s assuming that the headline from Boy Genius Report is either not true or some financial thing that I don’t understand and the Stock value on the market shows one thing while the actual value is another.
I can’t say I’m saddened by this. Since Palm was being pretty slimy about using iTunes to sync their phones to for a while back there. I don’t know if they are still doing it, but Apple hasn’t updated iTunes in a while so they either stopped or Apple stopped caring.
One good thing from this is we won’t have to see those creepy ads with that really creepy lady: