Palm revenue and profit slump but Pre shows promise

Losses increase but new smartphone provides sales boost over last three months

Palm's Pre was well received

Smartphone maker Palm saw first quarter revenue and profit slump, but says a big boost to sales from its new Pre device during the last three months offers better prospects.

The company reported revenue of $68m (£41.6m), down from $367m (£225m) in the same period last year, with net losses increasing from $39.5m (£24.2m) to $161m (£98.5m) this year.

Palm shipped 823,000 smartphones during the quarter, down 30 per cent year on year, but up 134 per cent from the previous three months.

The firm’s Pre device was launched during the last quarter of the previous financial year, receiving favourable reviews and contributing to the recent sales upturn.

“We're making significant progress with Palm's transformation, and our culture of innovation is stronger than ever. We're launching more great Palm webOS products with more carriers, and turning our sights toward growth," said chief executive Jon Rubinstein.