This indicates that Palm and the market are growing faster than previous analyst estimates.

The new model is mobile pervasive computing, and it will change the very nature of the enterprise.

I am also glad to see that the initial launches of our key strategic products have been successful and that subsequent business expansion plans are taking place.

These accomplishments, and other initiatives under way, position us to return to profitability in the second quarter of the new fiscal year.

The Palm team again delivered stellar results on multiple fronts: revenue, units shipped, profitability, and content and platform momentum. This is our third consecutive quarter of 100-percent-plus year-over-year revenue growth, and we achieved it in an environment of increased competition and continued component constraints.

The overall demand for Palm-brand handheld devices remains robust. From our vantage point, Palm and others in the [handheld computing] space are in a perfect position this holiday season.

Even with this strong performance, demand for Palm products still outstrips supply.

This is another important step on our strategic roadmap as it will allow users to share information beyond the PC.

It was clearly a demanding quarter for Palm, our shareholders and our employees, but thankfully not for our customers, who continued to receive the best handheld solutions and services on the market.