Palm Picks up $83.9 Million in Cash | webOS Nation

Palm Picks up $83.9 Million in Cash

by Dieter Bohn Wed, 11 Mar 2009 10:33 am EDT


After some very grim news about Palm's anticipated 4th Quarter results, things have been looking up for them.  They got a nice little spot on national TV, sure, but they also announced that they're selling some of that common stock held by Elevation Partners to free up some more cash -- cash that Palm will desperately need as they ramp up for the full Pre launch.

The expanded stock offering (actually they sold a bit more than they'd originally planned) garnered $89.3 million, which has also given their stock a solid bump -- whether or not said bump will stick is a matter beyond the scope of this gadget-head.

Palm should have enough cash now to get them through at least two full quarters of what may be increased spending (during the Pre launch).  The Pre effect should then start kicking in and replenishing their cash reserves -- but not their balance sheet, which will look pretty ugly for quite awhile as Palm is accounting for Pre sales over two years (as Apple does with the iPhone) instead of at the moment of sale.  It's a tightrope Palm is walking here, but it looks like they're well past the half-way point and are keeping their balance (so to speak).