Despite Pre strength, Palm posts another loss

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Despite the strength of its Pre device in the United States, Palm as posted a fiscal first quarter loss – its ninth consecutive loss – and will sell 16 million shares of the company in hoping to raise some much needed cash to help it balance its finances.

While shipments totalled 823,000 units in the period that ended on August 28, which is an decrease of 30 percent compared to last year but is a 134 percent increase from the last quarter of 2009, retail customer sales fell 21 percent year-on-year to 810,000 units. Many of the units sold are said to be the Pre.

The Palm Pre, on the US mobile carrier Sprint Nextel, is viewed the phone that could help Palm back into the smartphone race after losing market share to Research in Motion, the makers of the BlackBerry line of products, and Apple, with its iPhone 3G and iPhone 3GS.

Despite the lackluster sales of the Pre, its chief executive and chairman Jon Rubinstein said that the company was making “significant progress” in transforming the company.

“We’re making significant progress with Palm’s transformation, and our culture of innovation is stronger than ever. We’re launching more great Palm webOS products with more carriers, and turning our sights toward growth,” Rubinstein said.

Its revenue, year on year, was down from $366,857 to $68,004, a massive 82 percent drop; but as the Wall Street Journal notes, it did not “book all the revenue from the Palm Pre”. It also has $211.8 million in cash, cash equivalents and short-term investments at the end of the quarter.

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