Key Developments For Palm, Inc.
Palm, Inc. (PALM.O) (Nasdaq)
Palm Inc. Shares Rise As Takeover By Nokia Corporation Rumor Resurfaces-Reuters
Reuters reported that shares of Palm Inc rose sharply fueled by rumors that Nokia Corporation may be eyeing the Company.
Palm Inc. Announces Pricing and Increased Size of Public Offering
Palm Inc. announced that it increased the size of its public offering of common stock to approximately 23.125 million shares, including approximately 18.5 million common shares underlying 49% of the units of Series C preferred stock and warrants acquired by Elevation Partners in January 2009. The public offering price per share will be $6.00. Upon the closing of the offering, Palm will receive net proceeds of approximately $83.9 million. Palm expects to use the proceeds to strengthen its working capital position and to further bolster the resources it is devoting to the launch of the Palm Pre and future product-development efforts. The underwriters will also have a 30-day option to purchase approximately 3.5 million additional shares of common stock from Palm to cover over-allotments, if any. Elevation Partners, which will recoup the $49 million it originally paid for the units, will use those funds to purchase approximately 8.2 million shares of Palm's common stock in the offering at the public offering price.
Palm Inc. To Remarket Common Stock Underlying Elevation Units
Palm Inc. announced that subject to market conditions, that it is exercising its right to remarket approximately 18.5 million common shares underlying 49% of the units of Series C preferred stock and warrants acquired by Elevation Partners in January 2009. In addition, the underwriters will have the right to purchase an additional 2.8 million common shares from Palm to cover over-allotments, if any. If the remarketing is completed, Palm will receive all net proceeds in excess of $49 million, the original purchase price of the units. These proceeds would be used to strengthen Palm`s working capital position and to further bolster the resources Palm is devoting to the launch of the Palm Pre and future product-development efforts.
Palm Inc. Issues Q3 2009 Revenue Outlook Below Analysts' Estimates
Palm Inc. announced that for third quarter 2009, it expects to report revenues in the range of $85 million to $90 million. The revenue declines vs. the Company's second quarter of fiscal year 2009 and third quarter of fiscal year 2008 are the result of reduced demand for the Company's maturing legacy smartphone products, the challenging economic environment and later-than-expected shipments of the Treo Pro in the United States. According to Reuters Estimates, analysts on an average were expecting the Company to report revenue of $155 million for third quarter 2009.
Palm Inc. Names Douglas C. Jeffries as CFO
Palm Inc. announced that Douglas C. Jeffries, previously Chief Accounting Officer at eBay, will join Palm, Inc. in January 2009 as the Company’s Chief Financial Officer(CFO). Andy Brown will transition out of the CFO role and stay with the Company through January.
