Talkin' Palm vol. 33 | webOS Nation

Talkin' Palm vol. 33

by Annie Latham Mon, 29 Mar 2010 9:52 am EDT

If you take earnings, units shipped and stock price out of the equation, Palm actually had a pretty good week. There's a new hip and cool ad that's been running during the March Madness NCAA games. The Palm Pre was actually written into the Flash Forward script (as in an actor uttered the words "Palm Pre").  The app side of the business continues to grow. And on Twitter, the "moms" have been quite active.  But still, the elephant(s) and gorilla(s) in the room are the earnings, the cash burn rate and the big question -- Can Palm survive?

So let's get the numbers out of the way so we can look at the lighter more enjoyable parts of the week.  If you haven't seen it yet, here's the link to the earnings announcement.  On Friday, the market reacted driving the stock down almost 30%. Two downgrades occurred: Kaufman Bros from Hold to Sell and Morgan Joseph from Hold to Underperform. Plus, it was reported that Canaccord Capital's Peter Misek said that Palm shares are worth $0. That's right, zero as in nothing.  Read more here.

On the plus side, Elevation Partners, which bought a 25% stake in Palm, is still supportive. In a Reuters story, a spokesperson for Elevation said:

"Jon and his team have built the best mobile operating system available today and they are now working through short-term execution challenges with Elevation's complete support."

Needless to say, takeover talk has continued.


Now let's shift to some March Gladness, starting with the new Palm ad.


Could webOS Licensing Save the Day? Earlier in the week, John Paczkowski of All Things Digital's Digital Daily did a story that delved into webOS licensing potential.  Morgan Stanley analyst Ehud Gelblum was quoted saying, “We calculate that if Palm licensed its OS for $7 per device and won 5-7 percent of the smartphone market in F2013, this could yield ~$0.40-0.50 earnings per share in F2013.”  An interesting thought for sure.

Sprint's Test Drive Kiosks: Tricia Duryee of MocoNews wrote about
a new feature that Sprint has on its web site that gives customers a way to virtually test drive new phones before taking the plunge and signing a two-year commitment.  The service is being provided by San Mateo, Calif.-based DeviceAnywhere.  Check out the Palm Pre here.

Pre and Pixi Sightings:  Parenthood, Law & Order SVU and already mentioned FlashForward.

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That's a wrap!