Palm’s Earnings Tank….Not That I’m Shocked By That

Palm reported their Q3 FY 2010 results yesterday and just like they predicted, the results weren’t good. You can read all the gory details here, but I’ll hit the highlights for you:

  • Palm reported a non-GAAP net loss of $102.8 million, or 61 cents per share. Wall Street was looking for a loss of 42 cents a share.
  • Non-GAAP adjusted revenue was $366 million. That was a bright spot as that was higher than the $316.2 million the street was looking for.

Although, Palm CEO Jon Rubinstein did try to put a positive spin on this:

“Our recent underperformance has been very disappointing, but the potential for Palm remains strong,” said Jon Rubinstein, Palm chairman and chief executive officer. “The work we’re doing to improve sales is having an impact, we’re making great progress on future products, and we’re looking forward to upcoming launches with new carrier partners. Most importantly, we have built a unique and highly differentiated platform in webOS, which will provide us with a considerable – and growing – advantage as we move forward.”

I don’t think Investors believe that. At the close of the markets today, Palm stock had tanked over 29%. So from where I sit, it looks like the beginning of the end for Palm. The company had a lot of potential, but as I said before, they completely missed the boat when Blackberry and Apple as well as Google much later on started taking their breakfast, lunch and dinner.

Oh well. Maybe Google will buy them for pennies on the dollar.

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