PalmSource Chief Executive Resigns

PalmSource Inc., which makes software for cellphones and other mobile devices, said Monday that Chief Executive David Nagel stepped down Sunday.

Nagel, who also held the title of president, will remain in an advisory role through mid-July, the company said. No reason was given for the departure.

Nagel, 60, was named CEO in December 2001. PalmSource was spun off from Palm Inc. in October 2003.

The board has begun a search for a permanent successor, spokeswoman Maureen O’Connell said. Senior Vice President Patrick McVeigh, 53, has been named interim CEO.

Before joining PalmSource in February, McVeigh was CEO of Aliph Corp., a developer of audio and speech technologies for mobile communications devices based in Brisbane, Calif. He was also in charge of worldwide sales, international marketing and operations at Palm Inc.

PalmSource, which is headquartered in Sunnyvale, Calif., on March 31 reported a third-quarter loss of $721,000, or 5 cents a share, compared with net income of $597,000, or 5 cents, a year earlier.

It said sales fell after Sony Corp., once PalmSource’s second-largest customer, cut production of devices that use the software.

Shares of PalmSource fell 12 cents to $8.89 on Nasdaq.

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Associated Press and Bloomberg News were used in compiling this report.