Changes at PalmOne

PalmOne has been doing well, but their stock took a hit after news that their CEO was leaving hit the wires. The Treo is a hit, but the PDA business seems to be foundering.

Is it possible that the PDA business is mature and the media just considers anything that doesn't grow in double digits to be a failure? It's instructive to look at the numbers behind the statements the press makes to get a sense of where their coming from.

Revenue Up 39%; Operating Margin Is 8.1%

MILPITAS, Calif., Dec. 16 /PRNewswire-FirstCall/ -- palmOne, Inc. (Nasdaq: PLMO) today reported revenue of $376.2 million for the second quarter of fiscal year 2005, ended Nov. 26, which is up approximately 39 percent from the $271.2 million reported during the comparable quarter a year ago.

Net income was $24.7 million, or $0.48 per diluted share. This compares to income from continuing operations in the year-ago period of $2.6 million, or $0.07 per diluted share.

It's still hard to see where the press derives their 'feelings' from regarding the PDA business.