Palm Loss Worse Than Expected

The recovery at Palm (PALM) is still a work in progress.

The company this afternoon posted revenue for the fiscal fourth quarter ended May 30 of $296.2 million, below the consensus of $301.11 million, and down from $312.1 million in the February quarter and $401.3 million in the year-earlier quarter. The company lost 22 cents a share on a non-GAAP basis in the quarter, four cents worse than the Street had expected, and down from a loss of 16 cents in the February quarter.

Palm said smartphone sell-through in the quarter was 968,000, up 29% year over year, or 16.2% sequentially.

The company took a $6.69 million impairment charge in the quarter for non-current auction-rate securities; that increased its total impairment charge for the fiscal year on auction-rate holdings to $32.2 million. Cash and securities now totals $258.7 million, not including $29.9 million in non-current auction rate holdings. Total cash and securities is down from $546.7 million a year ago, and $272 million at the end of February.

In after hours trading, Palm is down 17 cents, or 2.6%, to $6.37; the shares fell 30 cents in the regular session.