The Milpitas, California-based company reported first-quarter revenue of US$273.1 million for the period ending August 27, compared with US$168.6 million a year ago. Earnings reached US$19.6 million, or 38 cents per share. That compares with a loss of US$16.9 million, or 57 cents per share, last year.
Analysts were expecting revenue of around US$268 million and earnings of 20 cents per share, according to Thomson First Call.
PalmOne shares fluctuated wildly in after-hours trading, initially rising 15 percent to US$42.89, but then plummeting as low as 17.4 percent to US$30.81.
The company generated US$31.3 million in cash in the quarter, bringing its cash and cash equivalents to US$210 million.
"Excitement is mounting in our category, and we're confident that our innovative products coupled with our excellent distribution through retail and carrier channels will help us maintain and extend our market leadership," Todd Bradley, chief executive officer of PalmOne, said in a statement.
PalmOne shipped about 981,000 handhelds and phones in the quarter.
