Exhibit 99.1
CONTACTS: | PR2004-CORP10 |
Dave Vadasz, investor relations
408.503.7200
dave.vadasz@palmOne.com
Marlene Somsak, media relations
408.503.2592
marlene.somsak@palmOne.com
palmOne Reports Q4 Results
Revenue Up 23%; Operating Margin 6.0%
MILPITAS, Calif., June 21, 2004 — palmOne, Inc. (Nasdaq: PLMO) today reported a profitable fourth quarter of fiscal year 2004, ended May 28, with revenue totaling $267.3 million, up 23 percent from the $217.1 million reported during the comparable quarter a year ago, and up 10 percent sequentially.
Net income was $13.3 million, or $0.27 per share. This compares to a net loss for the fourth quarter of fiscal year 2003 of $15.0 million or $0.51 per share and net loss for the third quarter of fiscal year 2004 of $9.3 million or $0.20 per share.
Net income in the fourth fiscal quarter, measured on a non-GAAP(1) basis, totaled $15.9 million, or $0.32 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges. This compares to a non-GAAP net loss in the fourth quarter of fiscal year 2003 of $8.2 million, or $0.28 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation, restructuring charges and loss from discontinued operations. Non-GAAP net income in the third quarter of fiscal year 2004 was $0.6 million, or $0.01 per share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges.
“We achieved profitability for the quarter, and demand remains strong for our handheld and smartphone products,” said Todd Bradley, palmOne chief executive officer. “We ended fiscal year 2004 with very good results across virtually every key financial metric, and we enter fiscal year 2005 with an optimistic outlook for accelerating growth and increasing profitability.”
Bradley noted the following operational highlights:
• | Revenue grew 23 percent year-over-year, marking the fourth consecutive quarter of year-over-year growth; |
• | Gross margin rose to 30.5 percent, compared to 28.9 percent last quarter and 26.5 percent in the year-ago quarter; |
• | Operating expenses were reduced year-over-year and sequentially; |
• | Operating margin was 6.0 percent, and non-GAAP operating margin was 7.0 percent; |
• | Net income was $13.3 million, and non-GAAP net income totaled $15.9 million; |
• | Inventory fell by $8.7 million from the year-ago quarter, and inventory turns rose to 36 from 28 in the comparable quarter a year ago; and |
• | The company generated positive cash flow of $12.5 million during the quarter, including $6.4 million from continuing operations. |
Fiscal Year 2004 Results and Unit Shipments
Revenue for the full fiscal year 2004 was $949.7 million, up 13 percent from the $837.6 million reported in fiscal year 2003. Loss from continuing operations for fiscal year 2004 was $10.2 million, or $0.26 per share, compared with a loss from continuing operations of $417.9 million, or $14.38 per share, for fiscal year 2003. Non-GAAP income from continuing operations for fiscal year 2004 — excluding the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges — was $8.0 million, or $0.19 per share. That compares with a fiscal year 2003 non-GAAP loss from continuing operations — excluding the effects of amortization of intangible assets and deferred stock-based compensation, impairment charges, restructuring charges and the change in the valuation allowance for deferred tax assets — of $55.6 million, or $1.91 per share.
palmOne shipped approximately 1.1 million Zire(TM), Tungsten(TM) and Treo(TM) devices during its fourth fiscal quarter, and approximately 4.1 million devices during fiscal year 2004 — bringing the total number of devices shipped to-date by palmOne to more than 26.4 million.
INVESTOR’S NOTE: The company will hold a conference call for the public on June 21, 2004, at 2 p.m. Pacific/5 p.m. Eastern to discuss matters covered in this news release. The dial-in number for the call is 888.335.6680 in the United States and 973.321.1030 for international callers. No pass code is needed. A telephone call replay of the conference
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call will be available through July 5, 2004, beginning today at approximately 5 p.m. Pacific. The dial-in number for the replay is 877.519.4471 (PIN# 4818890) in the United States and 973.341.3080 (PIN# 4818890) for international callers. The live conference call also will be available over the Internet by logging onto the investor relations section of palmOne’s website athttp://ir.palmOne.com. An audio replay and text transcript of the conference call also can be accessed at the same URL beginning today at approximately5:30 p.m. Pacific.
NON-GAAP FINANCIAL MEASURES: To supplement the company’s consolidated financial statements presented in accordance with GAAP, palmOne uses non-GAAP measures of certain components of financial performance, including operating income (loss), net income (loss) and per share data, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and the company’s prospects for the future. Specifically, the company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. These non-GAAP results are among the primary indicators management uses as a basis for planning and forecasting of future periods and facilitating management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results. In addition, because palmOne has historically reported certain non-GAAP results to investors, the company believes the inclusion of non-GAAP measures provides consistency in the company’s financial reporting. These measures should be considered in addition to results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute for, or superior to, GAAP results. These non-GAAP financial measures also may be different from non-GAAP financial measures used by other companies. Consistent with the company’s practice, the non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding our ability to grow our business, to increase profitability, to remain competitive and to continue to lead our industry. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially, including, without limitation, the following: fluctuations in the demand for palmOne’s existing and future products and services and growth in palmOne’s industries and markets; possible defects in products and technologies developed; palmOne’s ability to timely and cost-effectively obtain components and elements of our technology from suppliers; and palmOne’s ability to compete with existing and new competitors. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in palmOne’s most recent filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the fiscal quarter ended Feb. 27, 2004. palmOne undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
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About palmOne, Inc.
palmOne, Inc. delivers what matters most to customers — whether a single consumer or company of thousands — enabling users to improve their personal lives and professional productivity through mobile devices and solutions.
palmOne is the name adopted in October 2003 by Palm, Inc., when it spun off PalmSource, Inc., maker of the Palm OS(R) platform software, and acquired Handspring, Inc. Uniting the Zire(TM), Tungsten(TM) and Treo(TM) subbrands, the creation of palmOne launched a new, stronger market leader in handheld computer and communications hardware and software solutions.
More information about palmOne, Inc. is available athttp://www.palmOne.com.
# # #
(1) | GAAP stands for Generally Accepted Accounting Principles. |
palmOne, Zire, Tungsten, Treo and Palm OS are among the trademarks or registered trademarks owned by or licensed to palmOne, Inc. or its subsidiaries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
# # #
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palmOne, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended | Years Ended | |||||||||||||||
May 31, 2004 | May 31, 2003 | May 31, 2004 | May 31, 2003 | |||||||||||||
Revenues | $ | 267,346 | $ | 217,146 | $ | 949,654 | $ | 837,637 | ||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of revenues (**) | 185,659 | 159,617 | 676,791 | 624,980 | ||||||||||||
Sales and marketing | 35,201 | 36,473 | 152,070 | 160,001 | ||||||||||||
Research and development | 17,760 | 18,997 | 69,367 | 70,175 | ||||||||||||
General and administrative | 10,104 | 9,751 | 37,323 | 37,307 | ||||||||||||
Amortization of intangible assets and stock-based compensation (*) | 2,278 | 237 | 9,751 | 3,266 | ||||||||||||
Impairment charges | — | — | — | 102,540 | ||||||||||||
Restructuring charges | 322 | 1,952 | 8,432 | 37,300 | ||||||||||||
Total costs and operating expenses | 251,324 | 227,027 | 953,734 | 1,035,569 | ||||||||||||
Operating income (loss) | 16,022 | (9,881 | ) | (4,080 | ) | (197,932 | ) | |||||||||
Interest and other income (expense), net | (1,009 | ) | 596 | (44 | ) | 3,005 | ||||||||||
Income (loss) before income taxes | 15,013 | (9,285 | ) | (4,124 | ) | (194,927 | ) | |||||||||
Income tax provision | 1,676 | 1,070 | 6,091 | 222,928 | ||||||||||||
Income (loss) from continuing operations | 13,337 | (10,355 | ) | (10,215 | ) | (417,855 | ) | |||||||||
Loss from discontinued operations (net of taxes of $0, $518, $252 and $2,070, respectively) | — | (4,666 | ) | (11,634 | ) | (24,727 | ) | |||||||||
Net income (loss) | $ | 13,337 | $ | (15,021 | ) | $ | (21,849 | ) | $ | (442,582 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | 0.29 | $ | (0.35 | ) | $ | (0.26 | ) | $ | (14.38 | ) | |||||
Discontinued operations | — | (0.16 | ) | (0.29 | ) | (0.85 | ) | |||||||||
$ | 0.29 | $ | (0.51 | ) | $ | (0.55 | ) | $ | (15.23 | ) | ||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | 0.27 | $ | (0.35 | ) | $ | (0.26 | ) | $ | (14.38 | ) | |||||
Discontinued operations | — | (0.16 | ) | (0.29 | ) | (0.85 | ) | |||||||||
$ | 0.27 | $ | (0.51 | ) | $ | (0.55 | ) | $ | (15.23 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||
Basic | 46,628 | 29,180 | 39,686 | 29,069 | ||||||||||||
Diluted | 49,358 | 29,180 | 39,686 | 29,069 | ||||||||||||
(*) Amortization of intangible assets and stock-based compensation: |
| |||||||||||||||
Cost of revenues | $ | 243 | $ | 57 | $ | 574 | $ | 899 | ||||||||
Sales and marketing | 1,540 | 106 | 7,906 | 704 | ||||||||||||
Research and development | 102 | 57 | 234 | 1,245 | ||||||||||||
General and administrative | 393 | 17 | 1,037 | 418 | ||||||||||||
$ | 2,278 | $ | 237 | $ | 9,751 | $ | 3,266 | |||||||||
Certain prior period balances have been reclassified to conform to the current period presentation.
palmOne’s fiscal quarters are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on May 31.
(**) | Cost of revenues does not include that portion of amortization of intangible assets and stock-based compensation related to cost of revenues. |
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palmOne, Inc.
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended May 31, 2004 | Three Months Ended May 31, 2003 | |||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Revenues | $ | 267,346 | $ | — | $ | 267,346 | $ | 217,146 | $ | — | $ | 217,146 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||
Cost of revenues (**) | 185,659 | — | 185,659 | 159,617 | — | 159,617 | ||||||||||||||||||
Sales and marketing | 35,201 | — | 35,201 | 36,473 | — | 36,473 | ||||||||||||||||||
Research and development | 17,760 | — | 17,760 | 18,997 | — | 18,997 | ||||||||||||||||||
General and administrative | 10,104 | — | 10,104 | 9,751 | — | 9,751 | ||||||||||||||||||
Amortization of intangible assets and stock-based compensation (*) | 2,278 | (2,278 | ) | — | 237 | (237 | ) | — | ||||||||||||||||
Restructuring charges | 322 | (322 | ) | — | 1,952 | (1,952 | ) | — | ||||||||||||||||
Total costs and operating expenses | 251,324 | (2,600 | ) | 248,724 | 227,027 | (2,189 | ) | 224,838 | ||||||||||||||||
Operating income (loss) | 16,022 | 2,600 | 18,622 | (9,881 | ) | 2,189 | (7,692 | ) | ||||||||||||||||
Interest and other income (expense), net | (1,009 | ) | — | (1,009 | ) | 596 | — | 596 | ||||||||||||||||
Income (loss) before income taxes | 15,013 | 2,600 | 17,613 | (9,285 | ) | 2,189 | (7,096 | ) | ||||||||||||||||
Income tax provision | 1,676 | — | 1,676 | 1,070 | — | 1,070 | ||||||||||||||||||
Income (loss) from continuing operations | 13,337 | 2,600 | 15,937 | (10,355 | ) | 2,189 | (8,166 | ) | ||||||||||||||||
Loss from discontinued operations (net of taxes of $0 and $518, respectively) | — | — | — | (4,666 | ) | 4,666 | — | |||||||||||||||||
Net income (loss) | $ | 13,337 | $ | 2,600 | $ | 15,937 | $ | (15,021 | ) | $ | 6,855 | $ | (8,166 | ) | ||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||
Continuing operations | $ | 0.29 | $ | 0.05 | $ | 0.34 | $ | (0.35 | ) | $ | 0.07 | $ | (0.28 | ) | ||||||||||
Discontinued operations | — | — | — | (0.16 | ) | 0.16 | — | |||||||||||||||||
$ | 0.29 | $ | 0.05 | $ | 0.34 | $ | (0.51 | ) | $ | 0.23 | $ | (0.28 | ) | |||||||||||
Diluted: | ||||||||||||||||||||||||
Continuing operations | $ | 0.27 | $ | 0.05 | $ | 0.32 | $ | (0.35 | ) | $ | 0.07 | $ | (0.28 | ) | ||||||||||
Discontinued operations | — | — | — | (0.16 | ) | 0.16 | — | |||||||||||||||||
$ | 0.27 | $ | 0.05 | $ | 0.32 | $ | (0.51 | ) | $ | 0.23 | $ | (0.28 | ) | |||||||||||
Shares used in computing per share amounts: | ||||||||||||||||||||||||
Basic | 46,628 | — | 46,628 | 29,180 | — | 29,180 | ||||||||||||||||||
Diluted | 49,358 | — | 49,358 | 29,180 | — | 29,180 | ||||||||||||||||||
(*) Amortization of intangible assets and stock-based compensation: |
| |||||||||||||||||||||||
Cost of revenues | $ | 243 | $ | (243 | ) | $ | — | $ | 57 | $ | (57 | ) | $ | — | ||||||||||
Sales and marketing | 1,540 | (1,540 | ) | — | 106 | (106 | ) | — | ||||||||||||||||
Research and development | 102 | (102 | ) | — | 57 | (57 | ) | — | ||||||||||||||||
General and administrative | 393 | (393 | ) | — | 17 | (17 | ) | — | ||||||||||||||||
$ | 2,278 | $ | (2,278 | ) | $ | — | $ | 237 | $ | (237 | ) | $ | — | |||||||||||
The above non-GAAP amounts have been adjusted to eliminate amortization of intangible assets and stock-based compensation, restructuring charges and loss from discontinued operations.
Certain prior period balances have been reclassified to conform to the current period presentation.
palmOne’s fiscal quarters are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on May 31.
(**) | Cost of revenues does not include that portion of amortization of intangible assets and stock-based compensation related to cost of revenues. |
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palmOne, Inc.
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Year Ended May 31, 2004 | Year Ended May 31, 2003 | |||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Revenues | $ | 949,654 | $ | — | $ | 949,654 | $ | 837,637 | $ | — | $ | 837,637 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||
Cost of revenues (**) | 676,791 | — | 676,791 | 624,980 | — | 624,980 | ||||||||||||||||||
Sales and marketing | 152,070 | — | 152,070 | 160,001 | — | 160,001 | ||||||||||||||||||
Research and development | 69,367 | — | 69,367 | 70,175 | — | 70,175 | ||||||||||||||||||
General and administrative | 37,323 | — | 37,323 | 37,307 | — | 37,307 | ||||||||||||||||||
Amortization of intangible assets and stock-based compensation (*) | 9,751 | (9,751 | ) | — | 3,266 | (3,266 | ) | — | ||||||||||||||||
Impairment charges | — | — | — | 102,540 | (102,540 | ) | — | |||||||||||||||||
Restructuring charges | 8,432 | (8,432 | ) | — | 37,300 | (37,300 | ) | — | ||||||||||||||||
Total costs and operating expenses | 953,734 | (18,183 | ) | 935,551 | 1,035,569 | (143,106 | ) | 892,463 | ||||||||||||||||
Operating income (loss) | (4,080 | ) | 18,183 | 14,103 | (197,932 | ) | 143,106 | (54,826 | ) | |||||||||||||||
Interest and other income (expense), net | (44 | ) | — | (44 | ) | 3,005 | — | 3,005 | ||||||||||||||||
Income (loss) before income taxes | (4,124 | ) | 18,183 | 14,059 | (194,927 | ) | 143,106 | (51,821 | ) | |||||||||||||||
Income tax provision | 6,091 | — | 6,091 | 222,928 | (219,141 | ) | 3,787 | |||||||||||||||||
Income (loss) from continuing operations | (10,215 | ) | 18,183 | 7,968 | (417,855 | ) | 362,247 | (55,608 | ) | |||||||||||||||
Loss from discontinued operations (net of taxes of $252 and $2,070, respectively) | (11,634 | ) | 11,634 | — | (24,727 | ) | 24,727 | — | ||||||||||||||||
Net income (loss) | $ | (21,849 | ) | $ | 29,817 | $ | 7,968 | $ | (442,582 | ) | $ | 386,974 | $ | (55,608 | ) | |||||||||
Net income (loss) per share: | ||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||
Continuing operations | $ | (0.26 | ) | $ | 0.46 | $ | 0.20 | $ | (14.38 | ) | $ | 12.47 | $ | (1.91 | ) | |||||||||
Discontinued operations | (0.29 | ) | 0.29 | — | (0.85 | ) | 0.85 | — | ||||||||||||||||
$ | (0.55 | ) | $ | 0.75 | $ | 0.20 | $ | (15.23 | ) | $ | 13.32 | $ | (1.91 | ) | ||||||||||
Diluted | ||||||||||||||||||||||||
Continuing operations | $ | (0.26 | ) | $ | 0.45 | $ | 0.19 | $ | (14.38 | ) | $ | 12.47 | $ | (1.91 | ) | |||||||||
Discontinued operations | (0.29 | ) | 0.29 | — | (0.85 | ) | 0.85 | — | ||||||||||||||||
$ | (0.55 | ) | $ | 0.74 | $ | 0.19 | $ | (15.23 | ) | $ | 13.32 | $ | (1.91 | ) | ||||||||||
Shares used in computing per share amounts: | ||||||||||||||||||||||||
Basic | 39,686 | — | 39,686 | 29,069 | — | 29,069 | ||||||||||||||||||
Diluted | 39,686 | 1,570 | 41,256 | 29,069 | — | 29,069 | ||||||||||||||||||
(*) Amortization of intangible assets and stock-based compensation: |
| |||||||||||||||||||||||
Cost of revenues | $ | 574 | $ | (574 | ) | $ | — | $ | 899 | $ | (899 | ) | $ | — | ||||||||||
Sales and marketing | 7,906 | (7,906 | ) | — | 704 | (704 | ) | — | ||||||||||||||||
Research and development | 234 | (234 | ) | — | 1,245 | (1,245 | ) | — | ||||||||||||||||
General and administrative | 1,037 | (1,037 | ) | — | 418 | (418 | ) | — | ||||||||||||||||
$ | 9,751 | $ | (9,751 | ) | $ | — | $ | 3,266 | $ | (3,266 | ) | $ | — | |||||||||||
The above non-GAAP amounts have been adjusted to eliminate amortization of intangible assets and stock-based compensation, impairment charges, restructuring charges, the change in the valuation allowance for deferred tax assets and the related income tax provision and loss from discontinued operations.
Certain prior period balances have been reclassified to conform to the current period presentation.
palmOne’s fiscal quarters are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on May 31.
(**) | Cost of revenues does not include that portion of amortization of intangible assets and stock-based compensation related to cost of revenues. |
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palmOne, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value amounts)
(Unaudited)
May 31, 2004 | May 31, 2003 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 203,069 | $ | 204,967 | ||||
Short-term investments | 49,382 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $8,317 and $4,635, respectively | 120,757 | 96,784 | ||||||
Inventories | 14,030 | 22,748 | ||||||
Investment for committed tenant improvements | 7,197 | — | ||||||
Prepaids and other | 8,067 | 9,039 | ||||||
Current assets of discontinued operations | — | 37,485 | ||||||
Total current assets | 402,502 | 371,023 | ||||||
Restricted investments | 1,175 | 948 | ||||||
Land not in use | 60,000 | 60,000 | ||||||
Property and equipment, net | 19,425 | 31,204 | ||||||
Goodwill | 257,363 | 13,815 | ||||||
Intangible assets, net | 10,979 | — | ||||||
Deferred income taxes | 34,800 | 34,800 | ||||||
Other assets | 1,694 | 1,720 | ||||||
Non-current assets of discontinued operations | — | 63,116 | ||||||
Total assets | $ | 787,938 | $ | 576,626 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 112,772 | $ | 89,371 | ||||
Accrued restructuring | 27,156 | 34,886 | ||||||
Provision for committed tenant improvements | 7,197 | — | ||||||
Other accrued liabilities | 112,679 | 100,519 | ||||||
Current liabilities of discontinued operations | — | 12,570 | ||||||
Total current liabilities | 259,804 | 237,346 | ||||||
Non-current liabilities: | ||||||||
Long-term convertible debt | 35,000 | 35,000 | ||||||
Other non-current liabilities | 1,600 | 165 | ||||||
Non-current liabilities of discontinued operations | — | 48,329 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.001 par value, 125,000 shares authorized; none outstanding | — | — | ||||||
Common stock, $.001 par value, 2,000,000 shares authorized; outstanding May 31, 2004, 47,032 shares; May 31, 2003, 29,230 shares | 47 | 29 | ||||||
Additional paid-in capital | 1,383,630 | 1,123,819 | ||||||
Unamortized deferred stock-based compensation | (1,995 | ) | (508 | ) | ||||
Accumulated deficit | (890,638 | ) | (868,789 | ) | ||||
Accumulated other comprehensive income | 490 | 1,235 | ||||||
Total stockholders’ equity | 491,534 | 255,786 | ||||||
Total liabilities and stockholders’ equity | $ | 787,938 | $ | 576,626 | ||||
Certain prior year balances have been reclassified to conform to the current year presentation.
palmOne’s fiscal quarters are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on May 31.
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palmOne, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
May 31, 2004 | May 31, 2003 | |||||||
Cash flows from operating activities: | ||||||||
Income (loss) from continuing operations | $ | 13,337 | $ | (10,355 | ) | |||
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 4,931 | 6,423 | ||||||
Amortization | 2,400 | 557 | ||||||
Recognized loss on equity investments | — | 3,747 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (19,080 | ) | (6,553 | ) | ||||
Inventories | 13,012 | 545 | ||||||
Prepaids and other | 1,959 | (1,266 | ) | |||||
Accounts payable | 1,739 | 1,999 | ||||||
Accrued restructuring | (7,955 | ) | (13,051 | ) | ||||
Other accrued liabilities | (3,984 | ) | (2,712 | ) | ||||
Net cash provided by (used in) operating activities | 6,359 | (20,666 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (1,547 | ) | (1,173 | ) | ||||
Purchase of short-term investments | (25,299 | ) | — | |||||
Sale of short-term investments | 24,762 | 5,063 | ||||||
Cash distributions from PalmSource | — | 819 | ||||||
Net cash provided by (used in) investing activities | (2,084 | ) | 4,709 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock; employee stock plans | 8,244 | 1,171 | ||||||
Net cash provided by financing activities | 8,244 | 1,171 | ||||||
Change in cash and cash equivalents | 12,519 | (14,786 | ) | |||||
Cash and cash equivalents, beginning of period | 190,550 | 219,753 | ||||||
Cash and cash equivalents, end of period | $ | 203,069 | $ | 204,967 | ||||
Other cash flow information: | ||||||||
Cash paid for income taxes | $ | (2,052 | ) | $ | (1,088 | ) | ||
Cash paid for interest | $ | (88 | ) | $ | (37 | ) | ||
Additional information: | ||||||||
Change in cash and cash equivalents | $ | 12,519 | $ | (14,786 | ) | |||
Change in short-term investments | 121 | (5,063 | ) | |||||
Change in cash and cash equivalents and short-term investments | $ | 12,640 | $ | (19,849 | ) | |||
Certain prior period balances have been reclassified to conform to the current period presentation.
palmOne’s fiscal quarters are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on May 31.
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