Palm, Inc. (PALM)
Q3 2010 Earnings Call Transcript
March 18, 2010 4:30 p.m. ET

Executives

Teri Klein - Vice President, Investor Relations
Jonathan J. Rubinstein - Chairman, President and Chief Executive Officer
Douglas C. Jeffries - Senior Vice President and Chief Financial Officer

Analysts

Amir Rozwadowski - Barclays Capital
Jonathan Goldberg - Deutsche Bank Securities
Jim Suva - Citigroup
Ehud Gelblum - Morgan Stanley
Matthew Thornton - Avian Securities, LLC
Shaw Wu - Kaufman Bros.
James E. Faucette - Pacific Crest Securities
Mike Abramsky - RBC Capital Markets
Thomas Michael Walkley - Piper Jaffray
Vivek Arya - Banc of America/Merrill Lynch
Kevin Hunt - Hapoalim Securities USA Inc.
Simona Jankowski - Goldman Sachs & Co.
Philip Cusick - Macquarie Research Equities
Sanjiv Wadhwani - Stifel Nicolaus & Company, Inc.
Edward Snyder - Charter Equity Research
Rod Hall - JP Morgan

Presentation

Operator

Good afternoon. My name is Anglia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2010 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key.

Thank you. I would now like to turn the call over to Ms. Klein, Vice President of Investor Relations.

Teri Klein

Thank you. I’d like to welcome everyone to Palm’s fiscal year 2010 third quarter financial results conference call. On the call today are Jon Rubinstein, Palm’s Chairman and CEO; and Doug Jeffries, our Chief Financial Officer. Today’s call is being recorded and will be available for replay on Palm’s IR website.

I’d like to remind everyone that today’s comments, including the Q&A session, will include forward-looking statements including but not limited to guidance on future revenue and other financial and business activity. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in Palm’s filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the second quarter of fiscal year 2010. Palm undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after this call.

Please note that today’s results will be discussed on a non-GAAP basis except where specifically noted in the commentary as GAAP results or estimates. Non-GAAP reporting is provided to help you better understand our business.

However, non-GAAP financial results are not meant to be considered in isolation or as a substitute for or superior to GAAP results. You should be aware that non-GAAP measures have inherent limitations and should be used only in conjunction with Palm’s consolidated financial statements prepared in accordance with GAAP.

Our earnings press release includes tables detailing non-GAAP measures, together with the corresponding GAAP numbers and reconciliation to GAAP. You can also find this information on Palm’s IR website. We encourage listeners to review these items.

And now, I’d like to turn the call over to Jon.

Jonathan J. Rubinstein

Thanks, Teri. And thanks, everyone, for joining us today. Since we began Palm’s transformation, our vision for Palm webOS has been to create the platform best designed to meet the web-based, cloud-centric future of mobile.

We’ve received critical acclaim for our accomplishments in this regard, but we have also experienced unforeseen challenges from intense competitive marketing efforts to our own execution in these steps, which have so far prevented us from achieving our carrier launch and sell-through goals.

Our recent underperformance has been extremely disappointing to me personally and to the entire Palm team. But we are more committed than ever to delivering truly innovative mobile experiences to propel our company forward and build value for our stakeholders.