Palm's Q1 profits slip despite high Treo demand

Palm posted a net income of $18.2 million for its fiscal first quarter, down from $19.6 million last year. The decrease in profits comes despite growing sales for the company's Treo smart phone. Palm reported shipping 470,000 Treo units during its first quarter, an increase of more than 160 percent from last year. Palm said its expects revenue of $435 million to $440 million over the next three months.

Although the company ships more Treos than any other product, it blamed the fallen profits on its LifeDrive devices and Tungsten and Zire handhelds. Shipments of the units dropped 22 percent. Palm said the lag in demand represents a decline in demand for PDAs in general.

For more details on Palm's fiscal first quarter:
- check out this article from CNET