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Palm breaks Treo record in Q3

Palm says it hit a company record for its smart phone sales in its third quarter, the reverse of Wednesday's negative news from handset maker Motorola.

Motorola had been named by analysts and some unnamed sources in news reports as a possible buyer of Palm. Some news reports say Motorola's bad showing in handset sales and lowered revenue projections kept it from moving forward with the purchase. Neither company has commented publicly on such a deal. During a conference call on the earnings, Palm CEO Ed Colligan declined to comment saying the company "is just not going to comment on rumours or speculation".

Palm's record was for sales of 738,000 smart phone units sold in the third quarter, an increase of 30 percent over the same quarter last year, and up 20 percent from the second quarter, according to a statement released on Thursday.

Revenue for the third quarter that ended March 2 was US$410 million, an increase of 5.6 percent over the $388 million revenue for the same quarter a year earlier.

"We delivered solid results in the third fiscal quarter and continue to expand our global market presence," Colligan says. "Treo smart phone sell-through and revenue reached record levels and Palm products were available to smart phone customers through seven of the top 10 carriers in the world."

All four Treo models, the 700w, 700p, 750 and 680, accounted for $354 million in sales for the quarter, Colligan stated in a conference call.

Palm also says revenue for the fourth quarter will be in the range of $400 million to $410 million.