Palm Swings to a Profit in 2Q

The handheld computer maker nets income of $3.5 million for the quarter.

Top-selling handheld computer maker Palm Inc. on Wednesday announced a profit for the fiscal second quarter, which the company attributed to the introduction of two new product lines along with a fair amount of cost-cutting.

The Milpitas, Calif., company said it had a net income of $3.5 million, or 12 cents per share, compared with a net loss one year ago of $25.2 million, or 89 cents per share.

Revenues for the period were $265 million, compared to $291 million a year ago, but Palm has cut costs significantly since then.

Palm officials said that the company shipped 1.4 million Palm-branded devices during the quarter, and that the companys two new brands, Zire and Tungsten, made up 44 percent of the revenue. The Palm Zire handheld, at $99, is aimed at the novice consumer market. The Tungsten T, at $499, is a high-end device aimed at the corporate market.

Palm plans to ship the Tungsten W, a phone-enabled device for next-generation wireless networks, in the first calendar quarter of 2003. The company will sell the W through several carriers.