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Hoover's Online Report BuilderpalmOne, Inc. (NASDAQ: PLMO)

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Table of ContentsThe Basics................................................................................................................................................................................1

Key Numbers..............................................................................................................................................................1Officers & Employees.................................................................................................................................................1Board Members...........................................................................................................................................................1Industry Information...................................................................................................................................................2SIC Codes....................................................................................................................................................................2NAICS Codes..............................................................................................................................................................2Top Competitors..........................................................................................................................................................2All Competitors...........................................................................................................................................................2

Biographies.............................................................................................................................................................................4Edward T. Colligan, Age 43.......................................................................................................................................4Jeffrey C. (Jeff) Hawkins, Age 47..............................................................................................................................4Andrew J. (Andy) Brown, Age 45..............................................................................................................................5Mary E. Doyle, Age 52...............................................................................................................................................5Patricia A. Tomlinson, Age 46....................................................................................................................................6Ken Wirt, Age 53........................................................................................................................................................6Philippe Morali, Age 43..............................................................................................................................................7Celeste Baranski..........................................................................................................................................................7Gordon A. Campbell, Age 60.....................................................................................................................................7Gareth C. C. Chang, Age 62.......................................................................................................................................8Jean−Jacques Damlamian, Age 62..............................................................................................................................9L. John Doerr, Age 53.................................................................................................................................................9Donna L. Dubinsky, Age 49.....................................................................................................................................10Bruce W. Dunlevie, Age 48......................................................................................................................................10Michael J. Homer, Age 46........................................................................................................................................11Susan G. Swensen, Age 56.......................................................................................................................................11

Significant Developments....................................................................................................................................................12

Overview...............................................................................................................................................................................13

History...................................................................................................................................................................................14

Products/Operations............................................................................................................................................................15

Other Resources Available On Hoover's Online...............................................................................................................16Other Resources........................................................................................................................................................16Related Products From Our Trusted Partners...........................................................................................................16

Annual Financials.................................................................................................................................................................17Historical Auditors....................................................................................................................................................19

Report Builder Results − palmOne, Inc. − Hoover's Online

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Table of ContentsQuarterly Financials............................................................................................................................................................20

Historical Financials & Employees.....................................................................................................................................23Historical Auditors....................................................................................................................................................24

Market Data..........................................................................................................................................................................25

Comparison Data..................................................................................................................................................................26

Competitive Landscape........................................................................................................................................................28

IPO Information...................................................................................................................................................................30

Report Builder Results − palmOne, Inc. − Hoover's Online

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The Basics

400 N. McCarthy Blvd.Milpitas, CA 95035 (Map)http://www.palmone.com

Phone: 408−503−7000Fax: 408−503−2750

palmOne read the future and decided to split. A leading provider of handheld computers, the company (formerly known asPalm) offers products ranging from entry−level devices to pricier models that include features such as color displays. ThepalmOne line tops out with wireless devices that can access e−mail and Internet content. The company sells its productsthrough distributors, wireless service carriers, retailers, and other resellers. With a move that differentiated its dualrevenue streams, Palm decided to split into two units. It spun off its operating system licensing business as PalmSource in2003 and changed its name to palmOne.

Key Numbers

Company Type Public (NASDAQ: PLMO)

D&B D−U−N−S Number 790158661

Fiscal Year−End May

2004 Sales (mil.) $949.7

2004 Employees 699

Auditor Deloitte & Touche LLPOfficers & Employees

Title Name Age Salary Bonus

President and Interim CEO Edward T. Colligan 43

CFO Andrew J. (Andy) Brown 45

CTO Jeffrey C. (Jeff) Hawkins 47

SVP and General Counsel Mary E. Doyle 52 $285,000 $96,339

SVP, Human Resources Patricia A. Tomlinson 46

SVP, Worldwide Marketing Ken Wirt 53 $326,250 $272,451

VP, Corporate Development andTreasury

Philippe Morali 43

VP, Engineering Celeste Baranski

CIO Marina Levinson

Director, Federal Sales John Inkley

Board Members

Title Name Age

Director Gordon A. Campbell 60

Director Gareth C. C. Chang 62

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Director Jean−Jacques Damlamian 62

Director L. John Doerr 53

Director Donna L. Dubinsky 49

Director Bruce W. Dunlevie 48

Director Michael J. Homer 46

Director Susan G. Swensen 56

Industry Information

Computer HardwareHandheld Computers & Accessories (primary)♦

•

SIC Codes

3571 Electronic computers

NAICS Codes

33411 Computer and Peripheral Equipment Manufacturing

334111 Electronic Computer Manufacturing

Top Competitors

Dell• Hewlett−Packard• Nokia•

All Competitors

Acer• Apple Computer• CASIO COMPUTER• Danger• Dell• Fujitsu• Good Technology• Hewlett−Packard• Kyocera• Microsoft• Motorola• Nokia• Psion• RIM• Samsung Electronics• Sharp• Sony• Sony Ericsson Mobile• Symbol Technologies• Tapwave•








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Toshiba•



Biographies

Edward T. Colligan, Age 43

President and Interim CEO

Recent Work Highlights

Handspring, Inc.Last position held, President and COO♦ 2002: President and COO, $186,666 salary♦ 2001: President and COO, $200,000 salary♦

•

palmOne, Inc.2004 − 2005, President♦ Title held until 2004: SVP; General Manager, Wireless Business Unit♦

•

Biography

Prior to palmOne, Ed led the development and marketing efforts for handheld computers at Handspring, Inc. Previously,as the vice president of marketing for Palm Computing, Ed worked with Jeff Hawkins and Donna Dubinsky to lead theproduct marketing and marketing communications efforts for Palm, including the successful positioning, launch, andmarketing of the popular Palm product family.Earlier in his career, Ed was vice president of Strategic and ProductMarketing at Radius Corporation. During his eight years there, he helped make Radius the brand leader in Macintoshgraphics, graphic imaging, and hardware development. Ed has earned several marketing industry accolades. MarketingComputers Magazine named him the 1997 Marketer of the Year, and Advertising Age named him one of the Top 100Marketers of 1997, an award that spanned all product categories. He holds a bachelor's degree from the University ofOregon.

Source: Company Web Site, 2004

Jeffrey C. (Jeff) Hawkins, Age 47

CTO


Handspring, Inc.Last position held, Chairman and Chief Product Officer♦ 2001: Chairman and Chief Product Officer, $150,000 salary♦

•

Biography

Jeff brings nearly 20 years of technical expertise to his role as palmOne's chief technology officer. He co−foundedHandspring with Donna Dubinsky in July of 1998 after five years together at Palm Computing. In 1994, Jeff invented theoriginal PalmPilot products and founded Palm Computing. He is often credited as the designer who reinvented thehandheld market. Jeff currently holds nine patents for various handheld devices and features. His vision for handheldcomputing dates back to the 1980s, when as vice president of research at GRiD Systems Corporation he served asprincipal architect and designer for the GRiDPad and GRiD Convertible. Prior to that, he held key technical positions with


Intel Corporation. He is also the founder and executive director of the non−profit Redwood Neuroscience Institute, ascientific research institute working on theories and mathematical models of brain function. Jeff was elected to theNational Academy of Engineering in 2003. He earned his bachelor's degree in electrical engineering from CornellUniversity.


Andrew J. (Andy) Brown, Age 45

CFO

Other Company Affiliations

Company Title Salary Bonus

Peregrine Systems, Inc. DirectorBiography

Brown is the former chief financial officer at Legato Systems, Inc., a storage−solutions provider that was acquired byEMC Corporation in October 2003. At Legato, he was part of a new management team that rebuilt the company. Prior toLegato, he was the vice president and chief financial officer at Adaptec Inc., where he helped drive company performanceduring periods of rapid growth.Brown holds a bachelor's degree in accounting from Eastern Illinois University(Charleston, Ill.) and is on the board of directors of Peregrine Systems.

Source: Company Press Release, December 15, 2004

Mary E. Doyle, Age 52

SVP and General Counsel, $285,000 salary, $96,339 bonus


General Magic, Inc.Last position held, SVP, Business Affairs, Secretary, and General Counsel♦ 2000: SVP, Business Affairs, Secretary, and General Counsel, $200,000 salary, $94,533 bonus♦

•

Biography

Mary Doyle is Senior Vice President, General Counsel and Secretary of palmOne, Inc., and manages delivery of legalservices to the company's worldwide operations across six areas, including corporate and securities, mergers, acquisitionsand finance, licensing, sales and marketing, employment and litigation. She also is responsible for spearheading thecompany's intellectual property strategy.Mary's legal career spans more than two decades, beginning with her first job inbusiness litigation at Manatt Phelps. In 1984, she joined Teledyne, Inc., where she worked for twelve years in increasinglyresponsible roles, ultimately as General Counsel of the company's Aerospace and Electronics Segment. Mary returned tothe Silicon Valley in 1996 to join General Magic, Inc. as its General Counsel and Secretary. She joined Palm, Inc. in April2003.Mary graduated with honors from the University of California, Santa Cruz, with a bachelor's degree in biology andeconomics. In 1978, Mary received her law degree from the Boalt Hall School of Law at the University of California,Berkeley, where she was the president of the law school student body and of her graduating class. Mary is immediate pastpresident of the Silicon Valley Association of General Counsel, a Trustee of the U.C. Santa Cruz Foundation and amember of the General Counsel Committee for the Silicon Valley Campaign for Legal Services.




Patricia A. Tomlinson, Age 46

SVP, Human Resources


Handspring, Inc.Last position held, VP, Human Resources♦

•

Biography

Patricia Tomlinson brings to palmOne more than 20 years of experience in the human resources field.Before joining thepalmOne team, she was vice president of Human Resources for Handspring, Inc. Prior to Handspring, she was responsiblefor the worldwide human resources department at Edify Corporation. She also designed and implemented all HR−relatedprograms and led the worldwide integration of all HR−functions for the merger of Edify with Security FirstTechnologies.Earlier in her career, Patricia also held positions at Xerox Corporation, Synopsys, Inc., and AppleComputer, Inc. She holds a bachelor's degree in sociology from Pomona College (Claremont, Calif.) and completed theProgram for Management Development from Harvard Business School.


Ken Wirt, Age 53

SVP, Worldwide Marketing, $326,250 salary, $272,451 bonus


palmOne, Inc.SVP, Marketing, Solutions Group♦

•

Biography

As senior vice president, Worldwide Marketing, Ken is responsible for all palmOne marketing activities, includingproduct marketing.Prior to joining the company, Ken was the founder and chief executive officer of Riffage.com, aventure capital−funded music media company backed by Mayfield Fund, Bertelsmann and AOL. The management teamhe recruited built Riffage into a popular music site on the Internet, with 1 million unique visitors per month, signing majorsponsors including Sony, Sega, Lipton's and Telocity. Before founding his own company, Ken was vice president ofcorporate marketing for Diamond Multimedia Systems, a leading PC peripherals company, where he managed allworldwide marketing functions, tech support, customer service and Internet marketing. Ken also led the introduction ofthe Rio portable MP3 player, which established the MP3 market and maintains a leading share today after the entry ofSony, Compaq, Philips, Samsung and Intel, among others.Previously, Ken headed marketing for Apple Computer's PIE(personal interactive electronics) division, overseeing all Newton marketing programs. Ken also has held key marketingroles at NEC Technologies, Cognitive Systems and Atari.He holds a master of business administration degree fromStanford University and an undergraduate degree from the University of Michigan.



Philippe Morali, Age 43

VP, Corporate Development and Treasury

Biography

Philippe Morali has been palmOne's Interim Chief Financial Officer since June 2004. From June 2002 until June 2004, hewas Vice President Corporate Development and Treasury. From February 2000 when Mr. Morali joined palmOne untilJune 2002, he served as Vice President Affiliations and Mergers & Acquisitions. Prior to joining palmOne, from May1998 to January 2000, Mr. Morali was the Director of Corporate Development for 3Com Corporation, a provider of voiceand data networking products, services and solutions and the parent company of Palm, Inc. prior to its initial publicoffering. Mr. Morali holds an M.B.A. from the Columbia University Graduate School of Business in New York and aB.A. in Management from the University of Geneva, Switzerland.

Source: Proxy, August 10, 2004

Celeste Baranski

VP, Engineering


Handspring, Inc.Last position held, VP, Engineering♦ 2002: VP, Engineering, $194,641 salary♦

•

Biography

Celeste comes to palmOne with more than 20 years of engineering, design and management experience in the mobilecomputing industry. Prior to joining palmOne, Celeste was vice president, engineering, at Handspring, Inc., where she ledthe company's engineering efforts for handheld computers and smartphones. Before coming to Handspring, Celesteworked at Hewlett−Packard Company as research and development manager of HP's mobile computing division, whereshe led engineering, manufacturing introduction and quality assurance for the company's laptop−computer productline.Prior to her work at HP, Celeste held engineering and management positions at several start−up companies in SiliconValley in the mobile computing space, including EO Inc., GO Corporation and GRiD Systems. Celeste has also worked asa consultant in product design and engineering management for various companies, including Norand, Plantronics,Kalidor, IDEO and Divicom.Celeste holds both a B.S. and M.S. in electrical engineering from Stanford University.


Gordon A. Campbell, Age 60

Director



Bell Microproducts Inc. Director



Quantum3D, Inc. ChairmanRecent Work Highlights

3dfx Interactive, Inc.Last position held, Chairman♦

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Cobalt Networks, Inc.Last position held, Chairman♦

•

Biography

Mr. Campbell has served as one of our directors since September 1999. Mr. Campbell is the founder and, since 1993, hasbeen President and Chairman of the Board of Techfarm, Inc., a company formed to launch technology−based start−upcompanies. Mr. Campbell was the founder of CHIPS and Technologies, Inc., a company that designs and distributes verylarge−scale integrated circuit products, and served as its President and Chief Executive Officer from December 1984 untilNovember 1993, and as its Chairman of the Board from December 1984 until November 1995. Mr. Campbell also servesas a director of Bell Microproducts, Inc. and Chairman of the board of directors of 3D/Fx Interactive Inc.


Gareth C. C. Chang, Age 62

Director



Agile Software Corporation DirectorBiography

Mr. Chang has served as one of our directors since July 2001. He has been the Chairman and Managing Partner of GC3 &Associates International, LLC, a private investment and consulting company, since June 2000. From September 1998 toApril 2000, Mr. Chang served as Chairman and Chief Executive Officer of STAR TV, a provider of satellite television inAsia, and Executive Director of News Corporation, a global provider of news, sports and entertainment. From July 1993to August 1998, Mr. Chang was President of Hughes Electronics International, a provider of digital televisionentertainment, broadband satellite networks and services and global video and data broadcasting, and President of DirectTV International, a provider of digital satellite television entertainment. Previously, he was Corporate Vice President ofMcDonnell Douglas Corporation, a defense contractor, manufacturer of commercial airplanes and wholly−ownedsubsidiary of the Boeing Company. Mr. Chang holds a bachelors degree in mathematics and physics from California StateUniversity, Fullerton and a master of business administration degree from Pepperdine University. He also holds anhonorary doctoral of science degree from California State University, Fullerton, is currently a visiting professor atTsinghua University in Beijing, China and is also serving on the Public Policy Advisory Board of the University ofCalifornia, Los Angeles. Mr. Chang is currently a member of the Advisory Council of Nike Inc. and also serves as adirector of SRS Labs Inc.





Jean−Jacques Damlamian, Age 62

Director

Biography

Mr. Damlamian has served as one of our directors since September 2000. Mr. Damlamian has been Group Executive VicePresident in charge of Technology and Innovation at France Telecom, a telecommunications operator and networksupplier, since January 2003. From January 1996 until January 2003, Mr. Damlamian served as Group Executive VicePresident in charge of the Development Branch of France Telecom. From April 1991 until January 1996, Mr. Damlamianwas Senior Vice President, Marketing and Sales for France Telecom. Mr. Damlamian served as Group Vice President,International and Industrial Affairs for France Telecom from November 1989 until April 1991, and was its Vice President,Mobile Services from May 1988 until November 1989. Prior to May 1988, Mr. Damlamian worked in various divisions ofFrance Telecom. Mr. Damlamian graduated from the Ecole Polytechnique and Ecole Nationale Superieure desTelecommunications, and he is a member of the Institute of Electrical and Electronics Engineers (IEEE). Mr. Damlamianis a recipient of the French Legion d'Honneur and the Ordre National du Merite. In March 2001, Mr. Damlamian waselected Non−Executive Chairman of the Supervisory Board of EUTELSAT S.A., a company that is incorporated inFrance and operates satellite services throughout Europe and other parts of the world. Mr. Damlamian also serves as adirector of Bull S.A.


L. John Doerr, Age 53

Director



Amazon.com, Inc. Director

Google Inc. Director

Intuit Inc. Director

Kleiner Perkins Caufield & Byers General Partner

Sun Microsystems, Inc. DirectorRecent Work Highlights

Handspring, Inc.Last position held, Director♦

•

Biography

Mr. Doerr served as a director of Handspring since October 1998. He has been a general partner of Kleiner PerkinsCaufield & Byers since September 1980. Before his tenure at Kleiner Perkins, Mr. Doerr was employed by IntelCorporation for five years. He currently serves on the board of directors of Intuit, Amazon.com, WebMD.com,Drugstore.com, Homestore.com, Sun Microsystems, Google, Good Technology, Elance and Smartpipes. Mr. Doerr holdsB.S.E.E and M.E.E. degrees from Rice University and an M.B.A. from the Harvard Graduate School of BusinessAdministration.








Donna L. Dubinsky, Age 49

Director



Intuit Inc. DirectorRecent Work Highlights

Handspring, Inc.Last position held, CEO and Director♦ 2002: CEO and Director, $186,666 salary♦ 2001: CEO and Director, $150,000 salary♦

•

Biography

Ms. Dubinsky was a co−founder of Handspring and the Chief Executive Officer and a director since the company'sfounding in July 1998. She served as President and Chief Executive Officer of Palm Computing, Inc. from June 1992 toJuly 1998. From 1982 to 1991, she was with Claris Corporation, a subsidiary of Apple Computer, Inc., and with AppleComputer, Inc., where she served in a number of logistics, sales and marketing positions, most recently as Vice PresidentInternational of Claris from 1987 to January 1991. Ms Dubinsky also serves on the board of directors for Intuit Inc., and isa trustee of the Computer History Museum. She holds a B.A. degree in history from Yale University and an M.B.A. fromthe Harvard Graduate School of Business Administration.


Bruce W. Dunlevie, Age 48

Director



Benchmark Capital Management Co., L.L.C. General Partner

Rambus Inc. DirectorRecent Work Highlights

Handspring, Inc.Last position held, Director♦

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Wink Communications, Inc.Last position held, Director♦

•





Biography

Mr. Dunlevie served as a director of Handspring since October 1998. Mr. Dunlevie has been a Managing Member ofBenchmark Capital, a venture capital firm, since its founding in May 1995. From 1989 to 1995, Mr. Dunlevie was ageneral partner at Merrill, Pickard, Anderson & Eyre, a venture capital firm. Prior to MPAE, Mr. Dunlevie served as VicePresident and General Manager of the Personal computer Division of Everex Systems, Inc., a personal computermanufacturer, and as an investment banker with Goldman, Sachs & Co. He also serves on the board of directors ofBridgeSpan, Good Technology, Matrix Semiconductor, Orchestria, Rambus and Raza Foundries. Mr. Dunlevie holds aB.A. degree from Rice University and an M.B.A. from the Stanford School of Business.


Michael J. Homer, Age 46

Director

Biography

Mr. Homer has served as one of our directors since February 2000. Mr. Homer has been the Chief Executive Officer andChairman of Kontiki, Inc., a provider of a managed delivery system for enterprise media and document control, sinceNovember 2000. From April 1999 to November 2000, Mr. Homer was Senior Vice President at America Online, anInternet service provider. Prior to Netscape's acquisition by America Online, Mr. Homer held various positions atNetscape, a provider of software, services and website resources to businesses and consumers using the Internet,beginning in October 1994, including Executive Vice President, Sales and Marketing and General Manager of NetscapeNetcenter. From April 1994 to October 1994, Mr. Homer was a consultant. From August 1993 to April 1994, Mr. Homerserved as Vice President, Engineering at EO Corporation, a hand−held computer manufacturer, and from July 1991 toJuly 1993, Mr. Homer was Vice President, Marketing of Go Corporation, a pen−based software company. He hadpreviously been Director of Product Marketing of Apple, a manufacturer of personal computers and related personalcomputing resources, where he held various technical and marketing positions from 1982 through 1991. Mr. Homer holdsa B.S. from the University of California, Berkeley.


Susan G. Swensen, Age 56

Director

Biography

Ms. Swenson has served as one of our directors since October 1999. Ms. Swenson has been President and Chief OperatingOfficer and a director of Leap Wireless International, Inc., a provider of communications solutions for the mass consumermarket, since July 1999. From July 1999 to July 2000, Ms. Swenson was Chief Executive Officer of CricketCommunications, Inc., a wireless communications service provider in the U.S. From March 1994 to July 1999, Ms.Swenson served as President and Chief Executive Officer of Cellular One, a joint venture between AirTouch/Vodafoneand AT&T Wireless, two wireless communications service providers. On April 13, 2003, Leap Wireless International andsubstantially all of its subsidiaries filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Codeof 1978, as amended. Ms. Swenson is also a director of Wells Fargo Bank.



Significant Developments

Date Event Details


Overview

palmOne read the future and decided to split. A leading provider of handheld computers, the company (formerly known asPalm) offers products ranging from entry−level devices to pricier models that include features such as color displays. ThepalmOne line tops out with wireless devices that can access e−mail and Internet content. The company sells its productsthrough distributors, wireless service carriers, retailers, and other resellers. With a move that differentiated its dualrevenue streams, Palm decided to split into two units. It spun off its operating system licensing business as PalmSource in2003 and changed its name to palmOne.

palmOne still leads the handheld market, but it faces fierce competition from both upstarts and stalwarts. As in the PCmarket, the battle between handheld computer makers centers on disparate operating systems (OS); it also features afamiliar combatant: Microsoft. Devices from companies such as Hewlett−Packard and newcomer Dell run Microsoft'sPocket PC OS. While Pocket PCs pose the greatest threat to palmOne's dominance, the company also competes againstcompanies that license the PalmSource OS. However, one company that grabbed significant market share withPalm−powered devices, consumer electronics giant Sony, announced plans in 2004 to pull its PDA products from marketsoutside Japan.

Palm has maintained a Shakespearean relationship with partner−rival Handspring; Palm founders Jeff Hawkins andDonna Dubinsky also founded Handspring, which licensed the Palm OS. Palm acquired Handspring in a stock swapvalued at about $169 million late in 2003. The deal occurred after Palm completed the spinoff of PalmSource. Theacquisition brought Handspring's line of Treo smart phones to the palmOne lineup.

Key components of palmOne's growth strategy include expansion into international markets. The company's product linereceived a makeover in 2002, when Palm unveiled two new offerings: Tungsten for enterprise applications at the highend, and the low−priced Zire for the consumer market.







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History

Inventor Jeff Hawkins and marketers Donna Dubinsky and Ed Colligan joined forces in 1992 to form Palm Computing.Hawkins had worked at Intel and GRiD Systems (which brought the first pen−based computer to the market); Dubinsky atApple Computer and Claris; and Colligan at Radius Corp. (a maker of Macintosh clones). The company's initial productwas Graffiti input software for handheld devices.

U.S. Robotics, a leading maker of computer modems, bought Palm for $44 million in 1995. The following year Palmunveiled its PalmPilot connected organizer. More than a million Pilots were sold within 18 months.

When U.S. Robotics was bought by 3Com in 1997, Palm became a subsidiary of the networking giant. 3Com sold 1.2million Palms in 1998. That year Hawkins, Dubinsky, and Colligan left to form rival Handspring, which launched itsVisor product in 1999.

In 1999, 3Com released the Internet−ready Palm VII and launched its Palm.net Internet service (now MyPalm) forhandheld devices. The following year it named former Sony president Carl Yankowski to Palm's CEO post. In 2000,3Com sold a minority stake in Palm (by then its fastest−growing unit) to the public in an offering worth about $875million. Palm's separation from 3Com was completed later that year when 3Com distributed to its shareholders itsremaining shares of Palm.

With an eye toward strengthening its dominant position in the corporate market, Palm in early 2001 agreed to acquireinfrastructure software maker Extended Systems. Faced with slowing sales during an industrywide downturn, Palmannounced soon after that it would cut as much as 15% of its workforce. The company then terminated its plan to buyExtended Systems, agreeing later to sell Extended software, which allows access to databases through Palm products.

Palm also created a separate unit for its operating systems (OS) software, and acquired the software and intellectualproperty assets of OS specialist Be. In the wake of Palm's restructuring efforts, Yankowski resigned as CEO in late 2001;Benhamou was named CEO.

Palm spun off its operating system licensing business as PalmSource in 2003 and changed its name to palmOne. ToddBradley became CEO of palmOne. After it completed the spinoff, palmOne acquired Handspring in a stock swap valuedat about $169 million.





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Products/Operations

2004 Sales

$ mil. % of total

US 573.5 60

Other countries 376.2 40

Total 949.7 100

Selected Products

Handhelds (Tungsten, Zire)• Smart phones (Treo)•

Archived Charts

2001 Sales $ mil. % of totalUS 966 62Other countries 593 38

Total 1,559 100

2003 Sales

$ mil. % of total

US 526.8 60

Other countries 345.1 40

Total 871.9 100 2002 Sales $ mil. % of totalSolutions Group 1,006 94PalmSource 67 6Adjustments (42) −

Total 1,031 100

2003 Sales

$ mil. % of total

Solutions Group 837.6 92

PalmSource 73.4 8

Adjustments (39.1) −

Total 871.9 100


Other Resources Available On Hoover's Online

News for palmOne (last 90 days)

Company Press Release Archive

Other Resources

Headquarters Map• SEC Filings

10−K Filings♦ •

Stock Quote• Stock Chart• Earnings Estimates• ValuEngine Analysis• Annual Report • Investor Relations • Financial Data Definitions• Market Data Definitions• Comparison Data Definitions• Historical Financials & Employees Definitions•

Related Products From Our Trusted Partners

Buy A DBReport For palmOne

Buy Reports and Books

Palm, Inc.: Company Profile: Company Profile(Datamonitor, Mar 1, 2005, Business Reports)

•

Handheld Computers &Accessories: Financial Analysis Profiles(BizMiner, Dec 26, 2004, Business Reports)

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PC and Handheld Markets Projections for 2001(Giga Information Group, Inc., Feb 14, 2001, Business Reports)

•

Mobile Commerce: Retailers Should Harness the Promotional Potential ofthe Mobile Platform(Jupitermedia Corporation, Mar 11, 2003, Business Reports)

•

PDA and Handheld Comparison &Selection Guide(Faulkner Information Services, Jan 3, 2003, Business Reports)

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Fire and Security System Services in Australia(IBISWorld, Sep 25, 2004, Business Reports)

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Handheld Computers &Accessories: Marketing Research Profiles(BizMiner, Dec 26, 2004, Business Reports)

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Wi−Fi Growth Creates New Opportunities for Streaming Media Devices:(Jupitermedia Corporation, Mar 14, 2003, Business Reports)

•

Additional 3rd Party Libraries

Additional Research On palmOne


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Annual Financials

All amounts in millions of US Dollars

Income Statement May 04 May 03 May 02

Revenue 949.7 871.9 1,030.8

Cost of Goods Sold 655.0 559.8 610.0

Gross Profit 294.7 312.1 420.8

Gross Profit Margin 31.0% 35.8% 40.8%

SG&A Expense 258.8 450.5 433.7

Depreciation & Amortization 31.5 37.6 47.9

Operating Income 4.4 (176.0) (60.8)

Operating Margin 0.5% −− −−

Nonoperating Income 0.0 0.0 0.9

Nonoperating Expenses 0.0 2.1 0.0

Income Before Taxes (4.0) (217.6) (108.0)

Income Taxes 6.1 225.0 (25.7)

Net Income After Taxes (10.1) (442.6) (82.3)

Continuing Operations (10.2) (442.6) (82.2)

Discontinued Operations (11.6) 0.0 0.0

Total Operations (21.8) (442.6) (82.2)

Total Net Income (21.8) (442.6) (82.2)

Net Profit Margin −− −− −−

Diluted EPS from Continuing Operations ($) (0.26) (15.23) (2.80)

Diluted EPS from Discontinued Operations ($) (0.29) 0.00 0.00

Diluted EPS from Total Operations ($) (0.55) (15.23) (2.80)

Diluted EPS from Total Net Income ($)

Dividends per Share 0.00 0.00 0.00

Balance Sheet May 04 May 03 May 02

Assets

Current Assets

Cash 203.1 242.4 278.5

Net Receivables 120.8 97.4 63.6


Inventories 14.0 22.7 55.0

Other Current Assets 64.7 8.4 81.1

Total Current Assets 402.5 371.0 478.2

Net Fixed Assets 79.4 94.6 211.6

Other Noncurrent Assets 306.0 111.0 299.4

Total Assets 787.9 576.6 989.1

Liabilities and Shareholders' Equity May 04 May 03 May 02

Current Liabilities

Accounts Payable 112.8 83.0 88.9

Short−Term Debt 0.0 0.0 0.0

Other Current Liabilities 147.0 154.3 144.1

Total Current Liabilities 259.8 237.3 233.0

Long−Term Debt 35.0 50.0 50.0

Other Noncurrent Liabilities 1.6 13.5 15.3

Total Liabilities 296.4 320.8 298.3

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0

Common Stock Equity 491.5 255.8 690.8

Total Equity 491.5 255.8 690.8

Shares Outstanding (mil.) 47.0 29.2 29.0

Cash Flow Statement May 04 May 03 May 02

Net Operating Cash Flow (13.1) (63.9) (252.9)

Net Investing Cash Flow (45.3) 5.3 (35.9)

Net Financing Cash Flow 56.4 22.5 53.6

Net Change in Cash (1.9) (36.1) (235.2)

Depreciation & Amortization 31.5 37.6 47.9

Capital Expenditures 10.3 (11.4) (16.2)

Cash Dividends Paid 0.0 0.0 0.0


Historical Auditors

Auditor Name Year

Deloitte & Touche LLP 2004


Data Definitions

Some financial information provided byCoreData LLC , Richmond, Virginia


http://www.coredatagroup.com

Quarterly Financials

All amounts in millions of US Dollars

Income StatementQuarter Ending

Feb 05Quarter Ending

Nov 04Quarter Ending

Aug 04Quarter Ending

May 04

QuarterEndingFeb 04

Revenue 285.3 376.2 273.1 267.3 242.5

Cost of Goods Sold 193.1 262.8 177.1 180.6 166.8

Gross Profit 92.2 113.4 96.0 86.7 75.7

Gross Profit Margin 32.3% 30.1% 35.2% 32.4% 31.2%

SG&A Expense 77.2 76.8 66.0 63.1 67.6

Depreciation & Amortization 5.9 6.3 7.0 7.3 10.8

Operating Income 9.1 30.3 23.0 16.3 (2.7)

Operating Margin 3.2% 8.1% 8.4% 6.1% −−

Nonoperating Income 1.2 0.6 0.0 (1.0) 0.0

Nonoperating Expenses 0.0 0.0 0.0 0.0 0.5

Income Before Taxes 6.3 30.9 23.0 15.0 (7.7)

Income Taxes 1.9 6.3 3.5 1.7 1.6

Net Income After Taxes 4.4 24.6 19.5 13.3 (9.3)

Continuing Operations 4.4 24.7 19.6 13.3 (9.3)

Discontinued Operations 0.0 0.0 0.0 0.0 0.0

Total Operations 4.4 24.7 19.6 13.3 (9.3)

Total Net Income 4.4 24.7 19.6 13.3 (9.3)

Net Profit Margin 1.5% 6.6% 7.2% 5.0% −−

Diluted EPS from ContinuingOperations ($)

0.09 0.48 0.38 0.37 (0.20)

Diluted EPS fromDiscontinued Operations ($)

0.00 0.00 0.00 0.02 0.00

Diluted EPS from TotalOperations ($)

0.09 0.48 0.38 0.39 (0.20)

Diluted EPS from Total NetIncome ($)

Dividends per Share 0.00 0.00 0.00 0.00 0.00

Balance Sheet


Quarter EndingFeb 05

Quarter EndingNov 04

Quarter EndingAug 04

Quarter EndingMay 04

QuarterEndingFeb 04

Assets

Current Assets

Cash 106.4 236.1 211.0 203.1 190.6

Net Receivables 158.5 219.4 133.3 120.8 101.5

Inventories 45.6 29.1 19.2 14.0 27.0

Other Current Assets 245.2 93.7 94.0 64.7 66.9

Total Current Assets 555.7 578.4 457.4 402.5 385.9

Net Fixed Assets 76.6 78.6 77.5 79.4 82.8

Other Noncurrent Assets 293.7 297.7 301.2 306.0 305.1

Total Assets 926.1 954.6 836.1 787.9 773.9

Liabilities and Shareholders'Equity





QuarterEndingFeb 04

Current Liabilities

Accounts Payable 150.6 184.5 128.3 112.8 111.0

Short−Term Debt 0.0 0.0 0.0 0.0 0.0

Other Current Liabilities 181.7 183.3 150.6 147.0 156.1

Total Current Liabilities 332.3 367.8 278.9 259.8 267.1

Long−Term Debt 35.0 35.0 35.0 35.0 35.0

Other Noncurrent Liabilities 1.2 1.3 1.5 1.6 1.8

Total Liabilities 368.5 404.1 315.4 296.4 303.9

Shareholders' Equity

Preferred Stock Equity 0.0 0.0 0.0 0.0 0.0

Common Stock Equity 557.7 550.5 520.7 491.5 470.0

Total Equity 557.7 550.5 520.7 491.5 470.0

Shares Outstanding (mil.) 49.0 48.7 48.3 47.0 46.2

Cumulative Cash FlowStatement





QuarterEndingFeb 04

Net Operating Cash Flow 76.6 55.0 31.3 (13.1) (19.4)


Net Investing Cash Flow (84.6) (35.1) (32.3) (45.3) (43.2)

Net Financing Cash Flow 15.9 13.1 8.8 56.4 48.2

Net Change in Cash 7.8 33.1 7.9 (1.9) (14.4)

Depreciation & Amortization 5.9 6.3 7.0 7.3 10.8

Capital Expenditures (9.3) (7.6) (2.8) 10.3 11.9

Cash Dividends Paid 0.0 0.0 0.0 0.0 0.0

Data Definitions




Historical Financials & Employees

Income Statement

YearRevenue

($ mil.)Net Income

($ mil.)Net Profit

MarginEmployees

May 04 949.7 (21.8) −− 699

May 03 871.9 (442.6) −− 982

May 02 1,030.8 (82.2) −− 1,171

May 01 1,559.3 (356.5) −− 1,311

May 00 1,057.6 45.9 4.3% 951

May 99 563.5 29.6 5.3% 632

May 98 272.1 4.2 1.5% −−

May 97 114.2 (7.9) −− −−

May 96+ 7.1 (3.1) −− −−

Jun 95 1.4 (2.2) −− −−

Stock History

YearStock Price ($) P/E Per Share ($)

FYHigh

FYLow

FYClose

High Low Earns. Div.BookValue

May 04 25.3 8.1 21.2 −− −− (0.6) 0.0 10.5

May 03 24.3 6.1 8.1 −− −− (15.2) 0.0 8.8

May 02 87.8 18.2 21.5 −− −− (2.8) 0.0 23.9

May 01 909.6 63.6 76.0 −− −− (12.6) 0.0 25.9

May 00 2,227.5 268.3 310.5 1,237.5 149.1 1.8 0.0 36.4

May 99 −− −− −− −− −− 1.2 0.0 1.2

May 98 −− −− −− −− −− −− −− −−

May 97 −− −− −− −− −− −− −− −−

May 96 −− −− −− −− −− −− −− −−

Jun 95 −− −− −− −− −− −− −− −−

2004 Year−End Financials

Debt ratio 7.1%

Cash ($ mil.) 203.1

Current ratio 1.55

Long−term debt ($ mil.) 35.0


Shares Outstanding (mil.) 47.0

Dividend yield 0.0%

Dividend payout −−

Market Cap ($ mil.) 998.5

Historical Auditors

Auditor Name Year



+ Fiscal Year−End Change

Data Definitions




Market Data

Current Information

Last Close −− Price/Sales Ratio −−

52−Week High −− Price/Book Ratio −−

52−Week Low −− Price/Earnings Ratio −−

60−Month Beta −− Price/Cash Flow Ratio −−

Market Cap (mil.) −− Return on Assets −−

Shares Outstanding (mil.) −− Return on Equity −−

Dividend Rate −− Current Ratio −−

Dividend Yield −− Long−Term Debt/Equity −−

# of Institutional Holders −− % Owned by Institutions −−

Latest Short Interest Ratio −− Latest Net Insider Transactions −−

Data Definitions




Comparison Data

Profitability Company Industry 1 Market 2

Gross Profit Margin 32.31% 8.07% 48.49%

Pre−Tax Profit Margin 6.27% 1.72% 9.82%

Net Profit Margin 5.16% 1.21% 6.40%

Return on Equity 11.1% 9.6% 12.1%

Return on Assets 6.7% 4.2% 2.0%

Return on Invested Capital 10.5% 8.8% 5.8%

Valuation Company Industry 1 Market 2

Price/Sales Ratio 0.92 0.22 1.32

Price/Earnings Ratio 16.86 18.50 20.83

Price/Book Ratio 1.99 1.72 2.48

Price/Cash Flow Ratio 12.55 13.74 11.29

Operations Company Industry 1 Market 2

Days of Sales Outstanding 47.47 42.60 50.26

Inventory Turnover 22.4 13.0 7.9

Days Cost of Goods Sold in Inventory 16 28 45

Asset Turnover 1.4 3.8 0.3

Net Receivables Turnover Flow 9.2 9.1 7.5

Effective Tax Rate 17.8% 28.5% 32.5%

Financial Company Industry 1 Market 2

Current Ratio 1.67 1.67 1.41

Quick Ratio 1.5 1.1 1.0

Leverage Ratio 1.66 2.27 5.99

Total Debt/Equity 0.06 0.18 1.41

Interest Coverage 967.30 13.80 2.90

Per Share Data ($) Company Industry 1 Market 2

Revenue Per Share 24.48 108.51 21.33

Fully Diluted Earnings Per Sharefrom Total Operations

1.34 1.27 1.35

Dividends Per Share 0.00 0.06 0.48

Cash Flow Per Share 1.80 1.71 2.49

Working Capital Per Share 4.55 10.57 2.27

Long−Term Debt Per Share 0.71 1.32 12.16


Book Value Per Share 11.36 13.64 11.32

Total Assets Per Share 18.86 30.95 67.79

Growth Company Industry 1 Market 2

12−Month Revenue Growth 31.1% 14.0% 11.8%

12−Month Net Income Growth −− 1,560.0% 31.1%

12−Month EPS Growth −− 2,016.7% 22.7%

12−Month Dividend Growth −− 20.0% 9.1%

36−Month Revenue Growth 3.9% (0.7%) 7.4%

36−Month Net Income Growth −− −− 70.1%

36−Month EPS Growth −− −− 70.7%

36−Month Dividend Growth −− −− 4.9%1Industry: Computers WholesaleIndustry classifications are from CoreData LLC .

2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions



http://www.coredatagroup.com/db/groups.html

http://www.coredatagroup.com/


Competitive Landscape

KEY: Best of Group. Companies listed are Top Competitors.

Key Numbers palmOne Dell Hewlett−Packard Nokia

Annual Sales ($ mil.) 949.7 49,205.0 79,905.0 39,645.0

Employees 699 55,200 151,000 55,505

Market Cap ($ mil.) 1,109.1 87,589.6 59,926.3 71,169.0

Profitability palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

Gross Profit Margin 32.31% 19.00% 26.08% 40.68% 8.07% 48.49%

Pre−Tax Profit Margin 6.27% 9.03% 4.99% 16.09% 1.72% 9.82%

Net Profit Margin 5.16% 6.18% 4.28% 10.96% 1.21% 6.40%

Return on Equity 11.1% 46.9% 9.3% 22.5% 9.6% 12.1%

Return on Assets 6.7% 13.1% 4.7% 14.1% 4.2% 2.0%

Return on Invested Capital 10.5% 43.5% 8.3% 22.5% 8.8% 5.8%

Valuation palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

Price/Sales Ratio 0.92 1.78 0.73 1.80 0.22 1.32

Price/Earnings Ratio 16.86 30.19 17.65 16.06 18.50 20.83

Price/Book Ratio 1.99 13.49 1.59 3.69 1.72 2.48

Price/Cash Flow Ratio 12.55 26.00 10.07 12.93 13.74 11.29

Operations palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

Days of Sales Outstanding 47.47 32.29 50.47 53.90 42.60 50.26

Inventory Turnover 22.4 101.4 8.9 14.5 13.0 7.9

Days Cost of Goods Sold in Inventory 16 4 40 25 28 45

Asset Turnover 1.4 2.3 1.1 1.3 3.8 0.3

Net Receivables Turnover Flow 9.2 12.2 7.2 6.3 9.1 7.5

Effective Tax Rate 17.8% 31.5% 14.2% 30.5% 28.5% 32.5%

Financial palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

Current Ratio 1.67 1.20 1.51 2.45 1.67 1.41

Quick Ratio 1.5 1.0 0.9 2.0 1.1 1.0

Leverage Ratio 1.66 3.58 1.99 1.59 2.27 5.99

Total Debt/Equity 0.06 0.08 0.19 0.02 0.18 1.41

Interest Coverage 967.30 −− −− 210.60 13.80 2.90

Per Share Data ($) palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

Revenue Per Share 24.48 20.01 28.20 8.50 108.51 21.33


Fully Diluted Earnings Per Sharefrom Total Operations

1.34 1.18 1.17 0.95 1.27 1.35

Dividends Per Share 0.00 0.00 0.32 0.38 0.06 0.48

Cash Flow Per Share 1.80 1.37 2.05 1.18 1.71 2.49

Working Capital Per Share 4.55 1.12 4.87 3.35 10.57 2.27

Long−Term Debt Per Share 0.71 0.21 1.52 0.01 1.32 12.16

Book Value Per Share 11.36 2.64 13.00 4.14 13.64 11.32

Total Assets Per Share 18.86 9.44 25.89 6.58 30.95 67.79

Growth palmOne Dell Hewlett−Packard Nokia Industry 2 Market 3

12−Month Revenue Growth 31.1% 18.7% 9.6% 7.1% 14.0% 11.8%

12−Month Net Income Growth −− 15.0% 27.2% (3.8%) 1,560.0% 31.1%

12−Month EPS Growth −− 16.8% 30.0% 1.1% 2,016.7% 22.7%

12−Month Dividend Growth −− −− 0.0% 26.7% 20.0% 9.1%

36−Month Revenue Growth 3.9% 16.5% 19.7% 13.0% (0.7%) 7.4%

36−Month Net Income Growth −− 33.6% −− 30.0% −− 70.1%

36−Month EPS Growth −− 35.8% −− 31.6% −− 70.7%

36−Month Dividend Growth −− −− 0.0% 15.3% −− 4.9%

1 Data unavailable.2 Industry: Computers WholesaleIndustry classifications are from CoreData LLC .3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.

Data Definitions



http://www.coredatagroup.com/db/groups.html

http://www.coredatagroup.com/


IPO Information

Date Went Public Mar 2, 2000

Filing Date Dec 13, 1999

Proposed Offer Price $30.00 to $32.00

Actual Offer Price $38.00

First Day Open $145.00

First Day Close 95.06

Shares Offered (mil.) 23.00

Offering Amount (mil.) $874.00

Post−offering shares (mil.) 562.26

Underwriters

Goldman, Sachs & Co.Morgan Stanley Dean WitterMerrill Lynch & Co.Robertson, Stephens & Company

Copyright 2005, Hoover's, Inc., ALL RIGHTS RESERVED


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