Press Release: Palm, Inc. (Nasdaq:PALM) reported preliminary financial results for the first quarter of fiscal year 2008, ended Aug. 31, 2007. Full results will be reported Oct. 1, 2007.

Based on preliminary financial data, Palm expects revenue to be in the range of $359 million to $361 million for the first quarter of fiscal year 2008. Smartphone revenue is expected to be in the range of $300 million to $302 million for the quarter, and smartphone sell-through for the quarter is expected to range between 685,000 units to 690,000 units.

Earnings per diluted share are expected to be $(0.01) to $0.00 on a GAAP basis and $0.08 to $0.09 on a non-GAAP basis.

Gross margin is expected to be in the range of 36.0 percent to 36.2 percent on a GAAP basis and 36.1 percent to 36.3 percent on a non-GAAP basis.

Operating expenses on a GAAP basis are expected to be in the range of $134.0 million to $135.0 million and, on a non-GAAP basis, between $121.1 million and $122.1 million.

Included in the GAAP results are approximately $5.1 million related to SFAS 123(R) stock-based compensation expense, before taxes, approximately $1.0 million related to amortization of intangible assets, approximately $5.0 million of patent acquisition cost, approximately $6.6 million related to the first quarter restructuring charge for the recently implemented organizational changes and approximately $4.4 million related to the gain on sale of land.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, is expected to be in the range of $3.4 million to $4.4 million. EBITDA, adjusted to add back stock-based compensation, patent acquisition cost, restructuring charges and gain on sale of land, or Adjusted EBITDA, is expected to be between $16.0 million and $17.0 million.

Cash, cash equivalents and short-term investments balance is expected to be approximately $627 million.

The Company is initiating the process of marketing its proposed Senior Secured Loan Facilities in conjunction with its recapitalization transaction, which was approved by shareholders on Sept. 12, 2007. These preliminary results may be included in materials that will be shared with potential investors. The Company does not plan to provide any additional update on its results until the first-quarter earnings announcement.

Full results for the company’s first quarter of fiscal year 2008 will be announced on Monday, Oct. 1, after the close of the market at 1 p.m. Pacific/4 p.m. Eastern, and a conference call will follow at 1:30 p.m. Pacific/4:30 p.m. Eastern. The dial-in number is 800.901.5231 in the United States and 617.786.2961 for international callers. There is no passcode required for the call.

A telephone replay of the conference call will be available through Oct. 8, 2007. The dial-in number for the replay will be 888.286.8010 (domestic) and 617.801.6888 (international), passcode 17484531. An archive of the audio and visual portion of the conference call will be posted on Palm’s Investor Relations website at http://investor.palm.com.

Related Links

Full Press Release on Palm.com

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