Palm today reported revenues of US$265 million for the second quarter of fiscal year 2003, ended November 29, 2002, down 9 percent from the $291 million reported during the quarter a year ago, and up 54 percent from the first quarter of fiscal 2003. Net income, as measured by generally accepted accounting principles (GAAP), for the second quarter was $3.5 million, or $0.12 cents a share, compared with a year ago loss of $25.2 million, or $0.89 cents a share. Excluding costs related to items including inventory and restructuring, Palm’s profit was $5.7 million, or $0.19 cents a share. “A key driver behind our performance this quarter was the successful introduction and favorable market acceptance of two major products under our new subbrands Zire and Tungsten,” said Eric Benhamou, Palm’s chairman and chief executive officer. During the quarter, Palm shipped approximately 1.4 million Palm branded handhelds, bringing cumulative shipments to more than 20 million.