PalmOne Shares Fall on Quarterly Loss

EARNINGS

Hand-held computer maker PalmOne Inc. reported a quarterly loss and said revenue in the current period would fall short of Wall Street estimates, sending its shares tumbling.

In its first financial report since spinning off PalmSource Inc., the company said inventories at the end of the November quarter were higher than expected and shipments of its pocket-sized digital organizers declined from a year earlier.

The Milpitas, Calif., company reported a net loss of $4.1 million, or 11 cents a share, compared with year-ago profit of $3.5 million, or 12 cents. Revenue rose 5.2% to $271.2 million.

Shares of PalmOne fell $3.11, or 22.5%, to $10.74 on Nasdaq.

From Reuters