The good news: Revenue for the fiscal first quarter ended September 1 totaled $355.8 million, a bit above the consensus view of $354 million. Non-GAAP earnings of 21 cents a share were above the 18 cents a share the Street had expected; GAAP earnings were 16 cents a share.
Not-so-good news: Palm projected that revenue for the fiscal second quarter ended Dec. 1 would be between $430 million and $450 million, versus the Street consensus of $472 million, with non-GAAP profits of 20-23 cents a share, versus the consensus Street estimate of 28 cents. On a GAAP basis, Palm expects 15-18 cents a share.
Worrying News: The company said that “in view of dynamic market conditions, including Palm’s launch of new products and expansion into new geographies, the company is not reaffirming previous guidance at this time, and is providing guidance only for the second quarter.” Palm also said that for the remainder of the year, “it will balance top-line growth and market share over profitability”
Palm had issued an earnings warning for the quarter on September 6.
In June, when the company reported fourth quarter results, Palm had forecast revenue growth for the full year of 20%-25%. Last year, the company had revenue of $1.6 billion.
The company today also announced a $250 million stock repurchase plan.
Palm shares, which had declined $1.11 to $14.50 in the regular session, have bounced back 53 cents, to $15.03, in after hours trading.