Ahead of the Bell: Palm shares up after 4Q results
NEW YORK -- Shares of smart-phone maker Palm Inc. rose sharply ahead of Friday's market open, though analysts said the previous day's quarterly report provided few details about the company's plans.
In premarket trading, the shares were up $1.62, or 11.6 percent, to $15.64, poising them to hit their highest level in regular trading since October 2007.
Yahoo! BuzzLate Thursday, the Sunnyvale, Calif.-based company posted a loss of $105 million, or 78 cents per share, for the fiscal fourth quarter ended May 29. That compares with a loss of $43.4 million, or 40 cents per share, in the same period a year earlier.
The quarter included early shipments of the Pre, the first phone featuring the webOS operating system, which is meant to be the basis for a whole new line of phones. The Pre went on sale through Sprint Nextel Corp. ( S - news - people ) on June 6.
Palm did not say how many Pres it shipped, but analyst Jonathan Goldberg at Deutsche Bank ( DB - news - people ) estimated the number at 73,000, based on the earnings figures. That was better than he expected.
Goldberg said the earnings report may have been misinterpreted by investors because Palm reported results for the Pre using subscription accounting, which means the revenue - and cost of revenue - for the phone has been deferred and will be recognized over the phone's estimated economic life, which is 24 months.
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In premarket trading, the shares were up $1.62, or 11.6 percent, to $15.64, poising them to hit their highest level in regular trading since October 2007.
Yahoo! BuzzLate Thursday, the Sunnyvale, Calif.-based company posted a loss of $105 million, or 78 cents per share, for the fiscal fourth quarter ended May 29. That compares with a loss of $43.4 million, or 40 cents per share, in the same period a year earlier.
The quarter included early shipments of the Pre, the first phone featuring the webOS operating system, which is meant to be the basis for a whole new line of phones. The Pre went on sale through Sprint Nextel Corp. ( S - news - people ) on June 6.
Palm did not say how many Pres it shipped, but analyst Jonathan Goldberg at Deutsche Bank ( DB - news - people ) estimated the number at 73,000, based on the earnings figures. That was better than he expected.
Goldberg said the earnings report may have been misinterpreted by investors because Palm reported results for the Pre using subscription accounting, which means the revenue - and cost of revenue - for the phone has been deferred and will be recognized over the phone's estimated economic life, which is 24 months.
source
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