PalmOne Records Profit but Misses Expectations

PalmOne Inc., maker of the Treo mobile phone, had a third-quarter profit of $4.37 million on demand for its Treo models. The shares dropped 15% after hours after the company’s sales and profit forecast missed analysts’ estimates.

Net income totaled 9 cents a share, compared with a net loss of $9.32 million, or 20 cents, a year earlier, the company said. Sales rose 18% to $285.3 million.

Shares of Milpitas, Calif.-based PalmOne fell $3.56 to $20.49 in extended trading after the release of earnings. They had risen $1.16 to $24.05 on Nasdaq.