Palm saw sales rise year-on-year during its most recently completed quarter, the PDA maker said yesterday. However, sales remained effectively flat over the previous quarter.

Revenue for the three months to 2 September 2005 - the first quarter of Palm's fiscal 2006 - totalled $342.2m; up 23 per cent on Q1 FY2005's figure but only 1.9 per cent above the previous quarter's $335.8m.

Treo shipments were up 160 per cent on the year-ago quarter to 470,000 units, Palm said, but only 1.1 per cent above the previous quarter's total, we note. The upcoming arrival of the Windows Mobile-based and thus more corporate-friendly Treo 470w should help boost the current quarter's shipments, if it arrives in time.

Looking ahead, Palm said it expects Q2's revenues to come in the $435-440m range, up 27.1-28.6 per cent on Q1's total. Gross margins will reach 30.0-30.5 per cent, it added. No doubt it's hoping to cash in on the upcoming but as yet unannounced Z22 and T|X consumer and professional PDAs in the run up the Thanksgiving in the US and Christmas everywhere.

If all goes to plan, the company said, it will receive $240-250m in one-off tax benefits which will push up the company's bottom line significantly. ®

Related stories

• PDA shipment slide continued through Q3 (28 October 2005)
• Long wait for Palm Windows Mobile Treo (27 September 2005)
• Palm TX Wi-Fi PDA presented on web (23 September 2005)
• Palm to pull Tungsten line down-market? (15 September 2005)
• Analysis What sealed Palm's software fate? (10 September 2005)
• PalmSource bought by browser developer (9 September 2005)
• HTC smartens up bottom line (31 August 2005)
• HTC 'to build' Palm's Windows-based Treo (11 August 2005)
• Analysis Palm's Hawkins points to 'secret' product line (9 August 2005)