Palm To Cut Jobs After 3Q Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Palm To Cut Jobs After 3Q Loss

Even though it's the leading provider of personal data appliances for the high-tech market, the ailing economy has taken a toll on Palm Inc., which Tuesday reported a net loss of $1.9 million for the third quarter of 2001, or 0 cents per share, and warned that it expects to report a net loss of about 8 cents per share in the fourth quarter.

As a result, Palm CEO Carl Yankowski said the company will lay off 250 employees, or 10% to 15% of its staff. It will also halt plans to build a new corporate headquarters in San Jose, Calif. "The sudden change in the economic climate has been jarring to us," Yankowski said in a statement. "But not withstanding the current economic slowdown, I remain bullish on our future. We have market and mindshare in the early stages of the handheld market, and we have the world's No. 1 handheld OS."

Palm reported revenue of $470.8 million for its third quarter, ended March 2, a 73% increase from the $272.3 million generated in the third quarter of fiscal 2000. Pro forma net income was $9.3 million, or 2 cents per share for the third fiscal quarter of 2001, compared with pro forma net income of $15.8 million, or 3 cents per share, for the third quarter of fiscal 2000. Net income for the same quarter last year was $11 million.

Shipments of Palm handhelds during the third quarter rose 112% over the same period a year ago to 2.1 million units, bringing the total number of handheld devices shipped by Palm to nearly 13 million to date.

Yankowski attributed the third-quarter loss to the economic slowdown and to the acquisition of wireless synchronization company WeSync Inc. and an agreement to acquire Extended Systems Inc. for wireless enterprise access technology.

Palm shares opened at $8.75 Wednesday after closing at $15.50 Tuesday before the third-quarter loss was reported. Palm's bad news seemed to affect its rivals, too, as shares of Psion PLC and Handspring Inc. fell during early trading Wednesday.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll