Palm, less losses than expected
The quarterly report for Palm went worse than expected. Losses per share in fact add up to 16 cents against the 19 indicated by analysts and the red state of 153.6 million dollars against the nearly 200 that was feared until a few days ago on a turnover of 165 million dollars. however it cannot be considered satisfactory; just think that last quarter profits were 3 cents per share on a turnover of 350 million dollars, but considering the gloomy forecasts of the eve it can be said that the management of Palm basically also performed well and that the first very difficult test is passed with less damage than feared. That the managers of the Santa Clara company managed to maneuver the spacecraft fairly well in the stormy sea of the quarter, all other data show this, even more interesting in the future. Warehouses, for example, now have stocks for 10 weeks when only recently, stocks had reached the impossible three-month level. The head of financial operations Judy Brunner has optimistically estimated that the warehouse level should shortly drop to 6/8 weeks, allowing better management of the release of new products and the market of those already in the channels. In addition to this, in May sales returned to the level of February after two months of precipitous decline. Palm plans to return to profit in the next quarter, albeit marginally: from 5 to 20 million dollars on turnover between 420 and 440 million dollars, thanks to the release of new products and the start of accumulation operations by distributors in view of the Christmas season.