Palm Inc., maker of the popular Palm Pilot personal digitalassistant, reported a 127% increase in revenue over the same quarter last year. Profit for the period almost doubled, to $17.3 million. Success can have a down side as well, however, as Palm warned that a component supplier can't keep pace with Pilot VIIx sales.
Palm reported revenue of $401 million for its first quarter, which ended Sept. 1, up from $176.5 million a year ago. At least some of that rocket ride comes courtesy of m100 Pilot sales, according to Palm execs. Profit for the quarter was $17.3 million, or 3 cents a share, compared with a profit of $9.7 million, or 2 cents a share, a year ago.
Palm shipped about 1.5 million Pilots of all models during the quarter, pegging cumulative shipments at more than 8.7 million, according to the company. However, a supplier has reportedly said it can't meet production goals for several components of Palm VIIx, Palm's mainstay wireless product. Execs refused to identify the components or the supplier.
"It will be the end of the third quarter before we will be able to source [enough] components to meet demand," says Palm CFO Judy Bruner. While the company's working with the supplier to overcome the shortage, execs are considering other sources for the components