PDA and software maker Palm
Q1 revenues came in at $177.4 million against last year's $172.3 million, while GAAP EPS improved from ($8.93) a share to ($0.74). Gross margins of 35% increased sequentially from 33% and year over year from 31%.
Palm still burned through the cash -- which we know thanks to the company's excellent practice of providing the cash flow statement in its press release. It consumed $14.5 million in operations and capital expenditures -- and that's even with a $6 million benefit from positive changes in accounts receivable and accounts payable. Still, that cash burn run rate of $58 million isn't too worrisome in the near term against $266 million on hand, but it may deteriorate.
That's because Palm plans to spin off PalmSource -- its operating unit that develops and licenses the Palm operating system -- and acquire competitor Handspring
Shares vaulted almost 8% yesterday to close at $22.57, but after the earnings report pulled back as much as 4% after-hours and 6% this morning. Former parent 3Com
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