Pre stems losses at Palm

 

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By Reuters

Posted on 26 Jun 2009 at 11:33

Palm has posted a narrower-than-expected fiscal fourth quarter loss, following strong demand for its recently unveiled Pre smartphone.

Palm executives claim early signs are promising for the Pre, which they hope will lead the company out of persistent losses.

Palm says demand for the Pre is exceeding its expectations. The device is expected to enhance margins at the company, which in past years has steadily relinquished market share to rivals.

The device, which went on sale at the beginning of June, has garnered generally favourable reviews. Analysts estimate Palm has shipped about 150,000 units so far.

"We're successfully ramping supply to meet demand that is strong and growing," says Palm chief executive officer Jon Rubinstein.

The Pre's impact will be more fully reflected in the current quarter, because of its June launch date. The device is yet to be launched in the UK.

Palm claims it could turn cash-flow positive in the second-half of fiscal 2010 and reassured analysts that its capital position was sufficient.

The company posted a net loss of $105 million in the fiscal fourth-quarter, compared with a loss of $43.4 million in the same quarter last year.