Palm exceeded analysts' expectations yesterday, returning better-than-expected earnings for the second quarter of fiscal 2001.
However, the company still suffered a stock-price tumble during a broad sell-off of technology stocks. Palm lost $5.50, to close at $38.13. This dropped further, to $32, on the after-hours market.
Palm reported net income of $27.5 million (five cents per share). In the same quarter last year, Palm yielded a net income of $15.5 million (three cents). Analysts expected a yield of four cents per share.
Palm's gross revenues rose to $522.2 million – up from $258.6 million last year. Palm said it shipped 2.1 million handhelds – 45 per cent more than for the year-ago quarter.
Despite a 7.12 per cent slump in the Nasdaq, Apple shares rose by 0.375 cents to close at $14.375. Adobe closed at $57.25 – a fall of $6.75, while Microsoft lost $3.3125, to close at $41.5. This follows its profit warning of last week.