Palm Posts a Loss for Third Quarter

The handheld computer maker reported a loss of $172.3 million on revenues of $209 million for the third quarter.

Handheld computer maker Palm Inc. on Thursday posted a loss for the third quarter of fiscal 2003.

The Milpitas, Calif., company reported a loss of $172.3 million, or $5.93 per share, on revenues of $209 million for the third quarter, down 28.6 percent from last year when the company posted revenues of $292.7 million. The company attributed the loss to tepid demand and a variety of charges.

"The progressive recovery of the handheld industry is continuing, although still held back by weak economic fundamentals," said Eric Benhamou, Palms chairman and CEO, in a statement.

Palm did report the first profitable quarter for its Palmsource software division since the company started posting Palmsource earnings separately last year. Palmsource, which sells operating system licensees to several handheld computer manufacturers, reported earnings of about $2.03 million on revenue of $26.27 million.

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