Palm, the No 1 handheld computer maker, struggling with slumping demand, posted a second-quarter loss on a 44 percent drop in revenues, but said it has renewed confidence in its operations and plans to launch a range of new products in 2002.

Palm chairman Eric Benh-amou, who assumed the chief executive role in November after Carl Yankowski resigned, said a 36 percent boost in second-quarter revenues from the previous quarter is the fruit of substantial changes in the company, from its leadership to its offering of gadgets. “I do not mean to suggest that all is well, after all we are losing money,” he said on a conference call after the release of the results. “But we have regained a good measure of control over our business, we have a tightly focused strategy and we have greater self confidence in our ability to execute our plans on-time and in-budget.”

“It has been a rough year but we are finishing on a strong up-note,” he later added in an interview with Reuters.

Quarterly loss within expected range

Santa Clara, California-based Palm, which dominates the market for both personal digital assistants and the software that powers them, said its second-quarter pro forma net loss was $36.6 million, or a loss of 6 cents a share, compared with pro forma net income of $27.5 million, or earnings of 5 cents a share, a year ago. The pro forma figures exclude restructuring charges and other items.

Actual net loss for the second quarter, which ended November 30, was $25.2 million, or a loss of 4 cents a share, compared with net income of $20.3 million, or earnings of 4 cents per share last year. The Wall Street consensus estimate was for a loss of 7 cents, while the expected loss ranged from 6 cents to 8 cents, according to research firm Thomson Financial/First Call.

Analysts, who had previously criticised Palm for failing to deliver a long-awaited new wireless version of its handheld device, were impressed with the company’s 2002 road map for products it will release. This includes wireless units in both fiscal third and fourth quarters, as well as updated software and more powerful handhelds before the end of the year.

“Generally everything they said was very good,” said J P Morgan analyst Paul Coster. “And they are not betting the whole ranch on one (product).”