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Palm Inc – ‘8-K’ for 3/17/05 – EX-99.1

On:  Thursday, 3/17/05, at 4:44pm ET   ·   For:  3/17/05   ·   Accession #:  1193125-5-54080   ·   File #:  0-29597

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/17/05  Palm Inc                          8-K:2,9     3/17/05    2:331K                                   RR Donnelley/FA

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     17K 
 2: EX-99.1     Press Release                                       HTML    279K 


EX-99.1   —   Press Release


This exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]



  Press release  

Exhibit 99.1

 

CONTACTS:

Sandy O’Halloran, investor relations

408.503.7405

sandy.ohalloran@palmOne.com

 

Marlene Somsak, media relations

408.503.2592

marlene.somsak@palmOne.com

 

palmOne Reports Q3 FY05 Results

 

Revenue Up 18% Year-over-Year

 

MILPITAS, Calif., March. 17, 2005 — palmOne, Inc. (Nasdaq: PLMO) today reported revenue of $285.3 million for the third quarter of fiscal year 2005, ended Feb. 25, up approximately 18 percent from the $242.5 million reported during the comparable quarter a year ago.

 

Net income was $4.4 million, or $0.09 per diluted share, measured on a Generally Accepted Accounting Principles, or GAAP, basis and reflecting certain non-recurring employee-separation costs. This compares to a loss in the year-ago period of $9.3 million, or $0.20 per share.

 

Net income in the third quarter of fiscal year 2005, measured on a non-GAAP basis, totaled $10.6 million, or $0.21 per diluted share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and employee-separation costs. This compares to a non-GAAP net income in the third quarter of fiscal year 2004 of $0.6 million, or $0.01 per diluted share, which excluded the effects of amortization of intangible assets and deferred stock-based compensation and restructuring charges.

 

“We executed well and delivered strong revenue growth and gross margin during the quarter. Treo(TM) smartphone sell-through rose by almost 50 percent, and our share of the handheld-computer

 

- 1 -


market expanded around the world,” said Ed Colligan, palmOne president and interim chief executive officer. “Going forward, we’re committed to investing in our product-development engine and software-application differentiation. We’ll also work to accelerate the pace at which we bring our smartphones to new carriers and higher-speed networks.”

 

Colligan noted the following financial highlights:

 

    Revenue rose approximately 18 percent, marking the seventh consecutive quarter of year-over-year growth;

 

    Gross margin rose to 31.0 percent in the quarter from 28.9 percent in the comparable quarter a year ago;

 

    Operating margin was 1.8 percent, and non-GAAP operating margin was 4.0 percent;

 

    Net income was $4.4 million, and non-GAAP net income totaled $10.6 million; and

 

    The company generated $21.5 million in cash from operations in the quarter.

 

During the quarter, palmOne accomplished the following:

 

    Expanded smartphone sales to include the Treo 650 across the Cingular Wireless network in the United States, building upon sales of Treo 600 smartphones and taking advantage of Cingular’s high-speed Enhanced Data for Global Evolution, or EDGE, network, the nation’s fastest data network;

 

    Expanded the relationship with Orange in the U.K., France and Switzerland to include the Treo 650 smartphone building upon Orange’s previous sales of Treo 600 smartphones. Orange is expected to begin selling the Treo 650 in the fourth fiscal quarter;

 

    Signed an agreement with Telecom Italia Mobile, or TIM, to distribute the Treo 650 smartphone in Italy. TIM is expected to begin selling the Treo 650 in the fourth fiscal quarter;

 

    Announced the sale of 1.5 million units of the Tungsten(TM) E handheld computer in 14 months on the market. The Tungsten E consistently has been the best-selling handheld in the United States and represented 20 percent of all U.S. handheld sales since its introduction, according to The NPD Group; and

 

- 2 -


    Shipped approximately 938,000 Zire(TM), Tungsten and Treo family devices. Cumulative shipments to date total approximately 29.9 million units.

 

Guidance for the Fourth Quarter of Fiscal Year 2005

 

The company also provided guidance for the fourth fiscal quarter of 2005, which ends June 3, 2005, as follows:

 

    Revenue will be between $320 million and $330 million, which represents 22 percent growth over the year-ago period, measured at the midpoint of the range. This guidance assumes that certain products originally expected to ship early in the fourth quarter will ship later in the fourth quarter or move to the first quarter of fiscal year 2006;

 

    Smartphones are expected to generate approximately 50 percent of anticipated net revenue;

 

    Gross margin is expected to be in the range of 29.5 percent to 30.5 percent;

 

    Operating expenses on a GAAP basis, which includes approximately $2.5 million for amortization of intangible assets and stock-based compensation, are expected to be in the $79 million to $81 million range. On a non-GAAP basis the company anticipates operating expenses to be in the range of $76 million to $78 million, which includes increased investments in our product-development engine;

 

    Earnings per diluted share on a GAAP basis in the range of $0.20 to $0.27 and on a non-GAAP basis in the range of $0.25 to $0.32; and

 

    Continued positive cash flow from operations.

 

Investor’s Note

 

The company will provide a detailed description of its financial results in a conference call and webcast with investors today at 2 p.m. PST. The dial-in number for the call is 800.291.5365 in the United States and 617.614.3922 for international callers. The passcode for both live calls is 42982984. The conference call will be available live over the Internet by logging onto http://ir.palmOne.com/. A slide presentation also will be available simultaneously with the conference call. An audio replay and text transcript of the conference call also can be accessed at the same URL beginning today at approximately 5:30 p.m. PST.

 

A replay of the conference call will be available through March 24, 2005. The dial-in number for the replay will be 888.286.8010, pass code 83270323, or, internationally at 617.801.6888, with a pass code of 83270323. An archive of the audio and visual portion of the conference call will be available on palmOne’s investor relations website at http://ir.palmone.com.

 

- 3 -


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 palmOne’s expected fourth quarter of fiscal year 2005 revenue, gross margin, operating expenses, earnings per share and cash flow from operations, product revenue mix, investments in product development and differentiation and bringing palmOne’s smartphones to new carriers and higher-speed networks. 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; palmOne’s ability to forecast demand for its products; possible defects in products and technologies developed; palmOne’s ability to introduce new products and services successfully and in a cost-effective and timely manner; palmOne’s ability to timely and cost-effectively obtain components and elements of its technology from suppliers; palmOne’s ability to compete with existing and new competitors; palmOne’s dependence on wireless carriers and ability to meet wireless-carrier certification requirements; palmOne’s ability to utilize its net operating losses. 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 November 26, 2004 and its Annual Report on Form 10-K for the fiscal year ended May 28, 2004. palmOne undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

 

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 may also 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.

 

About palmOne, Inc.

 

palmOne, Inc. — a leader in handheld computing and communications solutions — strives to put the power of computing in people’s hands so they can access and share their most important information. The company’s products include Treo(TM) smartphones, Zire(TM) and Tungsten(TM) handhelds and software and accessories.

 

palmOne products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at palmOne Retail Stores and palmOne online stores (http://www.palmOne.com/stores).

 

More information about palmOne, Inc. is available at http://www.palmOne.com.

 

# # #

 

palmOne, Zire, Tungsten and Treo are among the trademarks or registered trademarks owned by or licensed to palmOne, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

 

- 4 -


palmOne, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended

    Nine Months Ended

 
     Feb. 28, 2005

   Feb. 28, 2004

    Feb. 28, 2005

   Feb. 28, 2004

 

Revenues

   $ 285,265    $ 242,485     $ 934,590    $ 682,308  

Costs and operating expenses:

                              

Cost of revenues (*)

     196,773      172,169       645,054      491,132  

Sales and marketing

     44,391      38,582       126,994      116,869  

Research and development

     23,410      19,831       62,385      51,607  

General and administrative

     9,416      9,170       30,527      27,219  

Amortization of intangible assets and deferred stock-based compensation (**)

     2,186      5,414       7,052      7,473  

Employee separation costs

     4,000      —         4,000      —    

Restructuring charges

     —        4,522       —        8,110  
    

  


 

  


Total costs and operating expenses

     280,176      249,688       876,012      702,410  
    

  


 

  


Operating income (loss)

     5,089      (7,203 )     58,578      (20,102 )

Interest and other income (expense), net

     1,205      (486 )     1,782      965  
    

  


 

  


Income (loss) before income taxes

     6,294      (7,689 )     60,360      (19,137 )

Income tax provision

     1,921      1,633       11,702      4,415  
    

  


 

  


Income (loss) from continuing operations

     4,373      (9,322 )     48,658      (23,552 )

Loss from discontinued operations (net of taxes of $0, $0, $0 and $252, respectively )

     —        —         —        (11,634 )
    

  


 

  


Net income (loss)

   $ 4,373    $ (9,322 )   $ 48,658    $ (35,186 )
    

  


 

  


Net income (loss) per share:

                              

Basic:

                              

Continuing operations

   $ 0.09    $ (0.20 )   $ 1.01    $ (0.63 )

Discontinued operations

     —        —         —        (0.31 )
    

  


 

  


     $ 0.09    $ (0.20 )   $ 1.01    $ (0.94 )
    

  


 

  


Diluted:

                              

Continuing operations

   $ 0.09    $ (0.20 )   $ 0.95    $ (0.63 )

Discontinued operations

     —        —         —        (0.31 )
    

  


 

  


     $ 0.09    $ (0.20 )   $ 0.95    $ (0.94 )
    

  


 

  


Shares used in computing per share amounts:

                              

Basic

     48,751      46,073       48,254      37,373  

Diluted

     51,441      46,073       51,296      37,373  

(*)    Cost of revenues does not include that portion of amortization of intangible assets and deferred stock-based compensation related to cost of revenues.

(**)  Amortization of intangible assets and deferred stock-based compensation:

 

       

    

Cost of revenues

   $ 30    $ 243     $ 693    $ 331  

Sales and marketing

     1,629      4,709       4,997      6,366  

Research and development

     64      68       192      132  

General and administrative

     463      394       1,170      644  
    

  


 

  


     $ 2,186    $ 5,414     $ 7,052    $ 7,473  
    

  


 

  


 

palmOne’s fiscal periods are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on Aug. 31, Nov. 30, Feb. 28 and May 31.

 

- 5 -


palmOne, Inc.

Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended Feb. 28, 2005

   Three Months Ended Feb. 28, 2004

 
     GAAP

   Adjustments

    Non-GAAP

   GAAP

    Adjustments

    Non-GAAP

 

Revenues

   $ 285,265    $ —       $ 285,265    $ 242,485     $ —       $ 242,485  

Costs and operating expenses:

                                              

Cost of revenues (*)

     196,773      —         196,773      172,169       —         172,169  

Sales and marketing

     44,391      —         44,391      38,582       —         38,582  

Research and development

     23,410      —         23,410      19,831       —         19,831  

General and administrative

     9,416      —         9,416      9,170       —         9,170  

Amortization of intangible assets and deferred stock-based compensation (**)

     2,186      (2,186 )     —        5,414       (5,414 )     —    

Employee separation costs

     4,000      (4,000 )     —        —         —         —    

Restructuring charges

     —        —         —        4,522       (4,522 )     —    
    

  


 

  


 


 


Total costs and operating expenses

     280,176      (6,186 )     273,990      249,688       (9,936 )     239,752  
    

  


 

  


 


 


Operating income (loss)

     5,089      6,186       11,275      (7,203 )     9,936       2,733  

Interest and other income (expense), net

     1,205      —         1,205      (486 )     —         (486 )
    

  


 

  


 


 


Income (loss) before income taxes

     6,294      6,186       12,480      (7,689 )     9,936       2,247  

Income tax provision

     1,921      —         1,921      1,633       —         1,633  
    

  


 

  


 


 


Income (loss) from continuing operations

     4,373      6,186       10,559      (9,322 )     9,936       614  

Loss from discontinued operations

     —        —         —        —         —         —    
    

  


 

  


 


 


Net income (loss)

   $ 4,373    $ 6,186     $ 10,559    $ (9,322 )   $ 9,936     $ 614  
    

  


 

  


 


 


Net income (loss) per share:

                                              

Basic:

                                              

Continuing operations

   $ 0.09    $ 0.13     $ 0.22    $ (0.20 )   $ 0.21     $ 0.01  

Discontinued operations

     —        —         —        —         —         —    
    

  


 

  


 


 


     $ 0.09    $ 0.13     $ 0.22    $ (0.20 )   $ 0.21     $ 0.01  
    

  


 

  


 


 


Diluted:

                                              

Continuing operations

   $ 0.09    $ 0.12     $ 0.21    $ (0.20 )   $ 0.21     $ 0.01  

Discontinued operations

     —        —         —        —         —         —    
    

  


 

  


 


 


     $ 0.09    $ 0.12     $ 0.21    $ (0.20 )   $ 0.21     $ 0.01  
    

  


 

  


 


 


Shares used in computing per share amounts:

                                              

Basic

     48,751      —         48,751      46,073       —         46,073  

Diluted

     51,441      —         51,441      46,073       1,156       47,229  

(*)    Cost of revenues does not include that portion of amortization of intangible assets and deferred stock-based compensation related to cost of revenues.

(**)  Amortization of intangible assets and deferred stock-based compensation:

 

       

    

Cost of revenues

   $ 30    $ (30 )   $  —      $ 243     $ (243 )   $  —    

Sales and marketing

     1,629      (1,629 )     —        4,709       (4,709 )     —    

Research and development

     64      (64 )     —        68       (68 )     —    

General and administrative

     463      (463 )     —        394       (394 )     —    
    

  


 

  


 


 


     $ 2,186    $ (2,186 )   $ —      $ 5,414     $ (5,414 )   $ —    
    

  


 

  


 


 


 

The above non-GAAP amounts have been adjusted to eliminate amortization of intangible assets and deferred stock-based compensation, employee separation costs and restructuring charges.

 

palmOne’s fiscal periods are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on Aug. 31, Nov. 30, Feb. 28 and May 31.

 

- 6 -


palmOne, Inc.

Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Nine Months Ended Feb. 28, 2005

   Nine Months Ended Feb. 28, 2004

 
     GAAP

   Adjustments

    Non-GAAP

   GAAP

    Adjustments

    Non-GAAP

 

Revenues

   $ 934,590    $ —       $ 934,590    $ 682,308     $ —       $ 682,308  

Costs and operating expenses:

                                              

Cost of revenues (*)

     645,054      —         645,054      491,132       —         491,132  

Sales and marketing

     126,994      —         126,994      116,869       —         116,869  

Research and development

     62,385      —         62,385      51,607       —         51,607  

General and administrative

     30,527      —         30,527      27,219       —         27,219  

Amortization of intangible assets and deferred stock-based compensation (**)

     7,052      (7,052 )     —        7,473       (7,473 )     —    

Employee separation costs

     4,000      (4,000 )     —        —         —         —    

Restructuring charges

     —        —         —        8,110       (8,110 )     —    
    

  


 

  


 


 


Total costs and operating expenses

     876,012      (11,052 )     864,960      702,410       (15,583 )     686,827  
    

  


 

  


 


 


Operating income (loss)

     58,578      11,052       69,630      (20,102 )     15,583       (4,519 )

Interest and other income (expense), net

     1,782      —         1,782      965       —         965  
    

  


 

  


 


 


Income (loss) before income taxes

     60,360      11,052       71,412      (19,137 )     15,583       (3,554 )

Income tax provision

     11,702      —         11,702      4,415       —         4,415  
    

  


 

  


 


 


Income (loss) from continuing operations

     48,658      11,052       59,710      (23,552 )     15,583       (7,969 )

Loss from discontinued operations (net of taxes of $0 and $252, respectively)

     —        —         —        (11,634 )     11,634       —    
    

  


 

  


 


 


Net income (loss)

   $ 48,658    $ 11,052     $ 59,710    $ (35,186 )   $ 27,217     $ (7,969 )
    

  


 

  


 


 


Net income (loss) per share:

                                              

Basic:

                                              

Continuing operations

   $ 1.01    $ 0.23     $ 1.24    $ (0.63 )   $ 0.42     $ (0.21 )

Discontinued operations

     —        —         —        (0.31 )     0.31       —    
    

  


 

  


 


 


     $ 1.01    $ 0.23     $ 1.24    $ (0.94 )   $ 0.73     $ (0.21 )
    

  


 

  


 


 


Diluted:

                                              

Continuing operations

   $ 0.95    $ 0.21     $ 1.16    $ (0.63 )   $ 0.42     $ (0.21 )

Discontinued operations

     —        —         —        (0.31 )     0.31       —    
    

  


 

  


 


 


     $ 0.95    $ 0.21     $ 1.16    $ (0.94 )   $ 0.73     $ (0.21 )
    

  


 

  


 


 


Shares used in computing per share amounts:

                                              

Basic

     48,254      —         48,254      37,373       —         37,373  

Diluted

     51,296      —         51,296      37,373       —         37,373  

(**)  Cost of revenues does not include that portion of amortization of intangible assets and deferred stock-based compensation related to cost of revenues.

(*)    Amortization of intangible assets and deferred stock-based compensation:

 

     

      

Cost of revenues

   $ 693    $ (693 )   $  —      $ 331     $ (331 )   $ —    

Sales and marketing

     4,997      (4,997 )     —        6,366       (6,366 )     —    

Research and development

     192      (192 )     —        132       (132 )     —    

General and administrative

     1,170      (1,170 )     —        644       (644 )     —    
    

  


 

  


 


 


     $ 7,052    $ (7,052 )   $ —      $ 7,473     $ (7,473 )   $  —    
    

  


 

  


 


 


 

The above non-GAAP amounts have been adjusted to eliminate amortization of intangible assets and deferred stock-based compensation, employee separation costs, restructuring charges and loss from discontinued operations.

 

palmOne’s fiscal periods are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on Aug. 31, Nov. 30, Feb. 28 and May 31.

 

- 7 -


palmOne, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value amounts)

(Unaudited)

 

     February 28, 2005

    May 31, 2004

 

ASSETS

                

Current assets:

                

Cash and cash equivalents (1)

   $ 106,381     $ 98,569  

Short-term investments (1)

     229,852       153,882  

Accounts receivable, net of allowance for doubtful accounts of $7,615 and $8,317, respectively

     158,540       120,757  

Inventories

     45,620       14,030  

Investment for committed tenant improvements

     6,306       7,197  

Prepaids and other

     8,976       8,067  
    


 


Total current assets

     555,675       402,502  

Restricted investments

     775       1,175  

Land not in use

     60,000       60,000  

Property and equipment, net

     16,632       19,425  

Goodwill

     251,879       257,363  

Intangible assets, net

     5,167       10,979  

Deferred income taxes

     35,400       34,800  

Other assets

     564       1,694  
    


 


Total assets

   $ 926,092     $ 787,938  
    


 


LIABILITIES AND STOCKHOLDERS’ EQUITY

                

Current liabilities:

                

Accounts payable

   $ 150,567     $ 112,772  

Accrued restructuring

     19,095       27,156  

Provision for committed tenant improvements

     6,306       7,197  

Other accrued liabilities

     156,290       112,679  
    


 


Total current liabilities

     332,258       259,804  

Non-current liabilities:

                

Long-term convertible debt

     35,000       35,000  

Other non-current liabilities

     1,150       1,600  

Stockholders’ equity:

                

Preferred stock, $.001 par value, 125,000 shares authorized; none outstanding

     —         —    

Common stock, $.001 par value, 2,000,000 shares authorized; outstanding: 48,977 shares and 47,032 shares, respectively

     49       47  

Additional paid-in capital

     1,401,985       1,383,630  

Unamortized deferred stock-based compensation

     (3,209 )     (1,995 )

Accumulated deficit

     (841,980 )     (890,638 )

Accumulated other comprehensive income

     839       490  
    


 


Total stockholders’ equity

     557,684       491,534  
    


 


Total liabilities and stockholders’ equity

   $ 926,092     $ 787,938  
    


 



(1) In the third quarter of fiscal year 2005, the Company began to classify its investment in auction-rate securities as short-term investments. These investments were included in cash and cash equivalents in previous periods ($104.5 million at May 31, 2004), and such amounts have been reclassified in the accompanying interim financial statements to conform to the current period classification. This change in classification had no effect on the amounts of total current assets, total assets, net income or cash flow from operations of the Company.

 

palmOne’s fiscal periods are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on Aug. 31, Nov. 30, Feb. 28 and May 31.

 

- 8 -


palmOne, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three Months Ended

 
     Feb. 28, 2005

    Feb. 28, 2004

 

Cash flows from operating activities:

                

Income from continuing operations

   $ 4,373     $ (9,322 )

Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities:

                

Depreciation

     3,687       5,151  

Amortization

     2,186       5,625  

Deferred income taxes

     (600 )     —    

Realized gain on sale of equity investments

     (200 )     —    

Changes in assets and liabilities, net of effect of business acquisition:

                

Accounts receivable

     60,887       51,535  

Inventories

     (16,501 )     9,294  

Prepaids and other

     1,797       6  

Accounts payable

     (33,981 )     (19,977 )

Accrued restructuring

     (1,814 )     (3,055 )

Other accrued liabilities

     1,710       (18,547 )
    


 


Net cash provided by (used in) operating activities

     21,544       20,710  
    


 


Cash flows from investing activities:

                

Purchase of property and equipment

     (1,699 )     (770 )

Sale of equity investments

     1,200       —    

Purchase of short-term investments

     (54,875 )     (137,762 )

Sale of short-term investments

     47,734       87,676  

Sale of restricted investments

     —         1,041  
    


 


Net cash provided by (used in) investing activities

     (7,640 )     (49,815 )
    


 


Cash flows from financing activities:

                

Proceeds from issuance of common stock; employee stock plans

     2,756       635  
    


 


Net cash provided by financing activities

     2,756       635  
    


 


Change in cash and cash equivalents

     16,660       (28,470 )

Cash and cash equivalents, beginning of period(1)

     89,721       150,020  
    


 


Cash and cash equivalents, end of period(1)

   $ 106,381     $ 121,550  
    


 


Other cash flow information:

                

Cash paid for income taxes

   $ 3,400     $ 582  
    


 


Cash paid for interest

   $ 907     $ 1,191  
    


 



(1) In the third quarter of fiscal year 2005, the Company began to classify its investment in auction-rate securities as short-term investments. These investments were included in cash and cash equivalents in previous periods ($69.0 million at February 28, 2004 and $68.2 million at November 30, 2003), and such amounts have been reclassified in the accompanying interim financial statements to conform to the current period classification. This change in classification had no effect on the amounts of total current assets, total assets, net income or cash flow from operations of the Company.

 

palmOne’s fiscal periods are generally 13 weeks in length and end on a Friday. For presentation purposes, the periods are presented as ending on Aug. 31, Nov. 30, Feb. 28 and May 31.

 

# # #

 

- 9 -


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing    Date    Other Filings
6/3/0510-K
3/24/054
Filed on / For Period End:3/17/054
2/28/05
11/26/0410-Q
5/31/04
5/28/0410-K
2/28/04
11/30/03
 List all Filings 
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