Palm Posts First Quarter Loss

Palm has been losing the Smart Phone market toQuerty keyboard but comes in a smaller form
other competitors such as Apple which releasedfactor than the Treo phones. It also has a 1.3
the much-coveted iPhone just earlier this year.megapixel camera, 3-G network access and a
The company is also facing tough competitiontouch screen. The Treo 500v has instant
from regular mobile phone makers such as Nokia,messaging, email and web access. Although this
Motorola and Samsung, companies who are inphone is a Treo, it is geared towards students,
tune with the pulse of their markets, releasingmothers and other individuals who are not willing
new models packed with features quarterly.to spend on the other versions of Treo.
The company is expecting a loss $1.1 million to $The Centro comes with a 2-year subscription to
3.2 million on GAAP for the second quarter. ThisSprint Nextel Corp. and is being sold for $ 99.99
translates to a loss of $0.03 to $0.01 per share onmaking it in direct competition with mobile phones
the second quarter based on GAAP. Stillfrom Samsung and Research in Motion Ltd. The
developments in the company as well as newPalm Treo 500v was launched with Vodafone.
product releases should help turn the company'sAside from the expected profits from the launch
profitability around. In an effort to increaseof the Treo 500v and the Centro, Palm also
company profits, Palm released the Centro andexpects better company performance as it
the Treo 500v. Both mobile phones are designedcompletes its partial buyout of Elevation Partners,
to address the needs of the regular mobile users.a private equity firm. The partnership will result in
The two mobile phones will compete againstthe recapitalization of $325 million from the firm
regular mobile phones and not against smartwith a 25% stake. The strategic partnership will
phones. Palm has always targeted the businessbe completed before the end of October.
crowd and this is the first time it is releasingOther relatively new developments in the
mobile phones for other markets. The featurescompany include the release of Treos loaded with
and the price points of the Palm Centro should beWindows OS. The company also shelved the Palm
appealing to consumers who want to get moreFeleo, a Linux-based smart phone companion that
from their mobile phones but do not require thefeatures a full-sized keyboard and a 10-inch
applications and the price tag that come with thescreen. The Feleo was supposed to be released in
Smart phones. The two models will effectivelythe middle of this year but Palm instead decided
open up new markets for the company whichto focus on opening new markets and expanding
has traditionally been serving the business andtheir reach with the two additions to their mobile
high-end markets.phones- the Treo and the Centro.
The Centro is a mobile phone designed with a full