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Earnings Analysis: 
PalmSource Reports Wider Loss
Author: George Shopov
123jump.com



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PalmSource, Inc. (PSRC) announced after Monday’s closing bell that its quarterly loss widened amid costs related to its spin-off from PalmOne Inc. The developer of operating software for handheld computers reported a net loss of $9.1 million, or 89 cents a share, for its fiscal 2004 second quarter. For the corresponding period a year earlier, Sunnyvale, California-based PalmSource had a net loss of $8.3 million, or 83 cents a share. Excluding separation, amortization and stock-based compensation costs, the loss was $300,000, or 3 cents a share, in this year’s second quarter, compared with a loss before items of $6 million, or 60 cents a share, a year ago. For the quarter ended November 28, revenue climbed 13% to $16.8 million from $14.8 million, in the prior-year period. For the fiscal third quarter, PalmSource forecast revenue of about $21 million and earnings, excluding charges, in the range of $1 million to $3 million. Including charges, the company sees results between break-even and a loss of $2 million.

PalmSource shares closed Monday at $23.75, up a penny, or 0.04%. The stock dropped 3.17% to $23.00 in after-market trade.

Research In Motion, Ltd. (RIMM) of Waterloo, Canada, reported after market close Monday strong quarterly results, boosted by higher sales of its flagship BlackBerry e-mail device. The provider of handheld communications devices posted third-quarter net income of $16.3 million, or 20 cents a share, rebounding from a year-ago loss of $92.8 million, or $1.21 a share. RIM saw its quarterly revenue more than double to $153.9 million from $74.2 million, last year.

RIM shares gained $1.33 on Monday to $46.10. The stock soared 12.39% to $51.81 in after-hours trading.

The SCO Group, Inc. (SCOX) said Monday it narrowed its fourth-quarter loss to $1.6 million, or 12 cents a share, from a loss of $2.7 million, or 26 cents a share, in the 2002 equivalent, on revenue growth. Excluding charges, the Lindon, Utah-based developer of operating systems and software products said it earned $7.4 million, or 44 cents a share, above the mean estimate of analysts for a profit before items of 36 cents a share. Revenue was up to $24.3 million, in the fourth quarter, from $15.5 million, a year ago.

The stock plunged 5.69% to close Monday at $17.73. Company shares inched up 2 cents to $17.75 in after-hours trading.

ConAgra Foods, Inc. (CAG) of Omaha, Nebraska, posted Monday a second-quarter net profit of $270.1 million, or 51 cents a share, up 14.5% from $235.8 million, or 44 cents a share, last year, and ahead of analysts’ expectations for earnings of 49 cents a share, on average. The food company attributed the results to lower costs and higher operating profit in the food-ingredients segment.

Company shares rose 2.63% to $26.15 at market close Monday.

SUPERVALU INC. (SVU) said Monday its fiscal third-quarter earnings dropped to $48.6 million, or 36 cents a share, from $57.1 million, or 43 cents a share, a year ago. The Eden Prairie, Minnesota-based food wholesaler said results were weighed down by costs related to closing Denver operations and a St. Louis strike. Excluding items, earnings came in at 55 cents a share, well above the average analysts’ estimate of 42 cents a share.

The stock surged 10.13% on Monday to close at $27.95.

Whitehall Jewellers, Inc. (JWL) of Chicago, Illinois, reported Monday a wider third-quarter loss of $7.4 million, or 53 cents a share, in contrast to a loss of $5.1 million, or 35 cents a share, in the comparable period last year. The jeweler said results were due to increased legal fees. Quarterly revenue climbed 7.1% to $66.2 million, from $61.8 million a year earlier.

Company shares rocketed up 15.05% to $10.17 at market close Monday.

Mirant Corporation (MIRKQ) said Monday it narrowed its quarterly loss, helped by higher market prices for power. The Atlanta, Georgia-based energy trader reported a net loss of $33 million, or 8 cents a share, for its third quarter, against a restated net loss of $41 million, or 10 cents a share, a year earlier. Operating revenue jumped 14% to $1.6 billion.

The stock closed Monday unchanged at $0.40. Company shares shed a penny in after-market trade.

Ford Motor Company (F) raised Monday its 2003 guidance for earnings from continuing operations to between $1.05 and $1.10 per share, compared with its previous outlook for a profit of 95 cents to $1.05 per share. The Dearborn, Michigan-based world’s No.2 producer of cars and trucks said cost savings and strong revenue from new models boosted the forecast.

Ford shares jumped 10.17% to close Monday at $16.79. The stock added 8 cents to $16.87 in after-hours trading.

ShopKo Stores, Inc. (SKO) of Green Bay, Wisconsin, lowered Monday its quarterly earnings target, on weaker-than-expected holiday sales. The specialty and discount retailer said it now expects a profit of 95 cents to $1.10 a share in its fourth quarter, below its prior forecast at the low end of a $1.15 to $1.25 a share range.

The stock slipped 0.72% to $16.48 at market close Monday.

Metrologic Instruments, Inc. (MTLG) said Monday it sees fourth-quarter net earnings of 16 cents to 18 per share, on sales in the range of $38.5 million to $39.5 million. The Blackwood, New Jersey-based bar code company had previously forecast net income of 12 cents to 14 cents a share, on sales of $35 million to $36 million. Metrologic said the upward revision reflects a contract award from a major retailer.

Metrologic shares edged up 11 cents on Monday to $25.54. The stock surged 9.44% to $27.95 in after-market trade.
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Market data: BATS Exchange. Inc.

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