Palm Turns Small Profit

The Santa Clara, Calif., handheld computer company had a net income of $2.9 million, or one cent per share, for the quarter.

Palm Inc. on Thursday reported a narrow profit for the third quarter of fiscal 2002, which ended March. 1.

The Santa Clara, Calif., handheld computer company had a net income of $2.9 million, or one cent per share, for the quarter.

This compares with a net loss of $25.2 million for the second quarter of fiscal year 2002 and a net loss of $1.9 million for the third quarter of fiscal year 2001.

"Were pleased to report our third consecutive quarter of improved financial results, despite the traditional post holiday seasonal slowdown," said Eric Benhamou, Palms interim chairman and chief executive officer in a statement. "Tangible progress across virtually every aspect of our income statement and balance sheet gives us increased confidence in our ability to execute and to return to profitability."

Palm included in its earnings a separate revenue posting for its PalmSource software subsidiary, which was split off from the hardware company at the beginning of the year. PalmSource had a revenue of $19.457 million for the quarter, but an operating loss of slightly over $1 million.