Palm has confirmed it lost just under one million dollars in its first quarter 2008, which ended 31 August.

The company generated total revenue of $360.8 million, particularly driven by smartphone sales (689,000 units), up 21 per cent year over year. Smartphone revenue was $302.2 million, up 12 per cent from the year-ago period.

Losses included stock-based compensation expense of approximately $5.1 million, amortization of intangible assets of approximately $1.0 million, patent acquisition cost of $5.0 million, restructuring charges of approximately $6.6 million and gain on sale of land of approximately $4.4 million. This compares to net income for the first quarter of fiscal year 2007 of $16.5 million.

Despite the damage, Palm president and CEO Ed Colligan remained optimistic: "As we move toward completing the recapitalization transaction with Elevation Partners, we are excited to strengthen our ability to accelerate Palm's growth in the future," he said.

Elevation Partners has bought 25 per cent of Palm and will shortly move Jon Rubinstein, former head of Apple's iPod division, who will become executive chairman of Palm's Board of Directors.

Looking forward to the next quarter, the company expects Q2 revenue of between $370 million and $380 million, but anticipates loses of between $0.03 and $0.01 per share all the same.