palmOne, Inc. (Nasdaq: PLMO) today reported revenue of $273.1 million for the first quarter of fiscal year 2005, ended Aug. 27, which is up 62 percent from the $168.6 million reported during the comparable quarter a year ago.

"Our handheld and smartphone solutions performed very well in the marketplace. Outstanding products plus operational excellence resulted in strong growth and profitability," said Todd Bradley, palmOne chief executive officer. "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."

Bradley noted the following financial highlights:

• Revenue grew 62 percent, marking the fifth consecutive quarter of year-over-year growth;
• Unit sales of handheld computers was up 10 percent vs. the year-ago period;
• Gross margin rose to 33.3 percent in the quarter, compared to 30.5 percent in the fourth quarter of fiscal year 2004 and 28.1 percent in the comparable quarter a year ago;
• Operating margin was 8.5 percent, and non-GAAP operating margin was 9.3 percent;
• Net income was $19.6 million, and non-GAAP net income totaled $21.9 million;
• Inventory turns rose to 44 times compared with 21 times in the year ago period; and
• The company generated $31.3 million in cash from operations in the quarter.