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

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

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.

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

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

Applications are king, and all else spreads out from there.

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

While there is much yet to do, we made significant progress on key operational goals in the quarter despite continuing worldwide economic uncertainty and growing competition.

With Palm's transition into two individual businesses almost complete, my role has changed, and it no longer matches my aspirations. I leave confident that our separation and solutions strategies, combined with the new leadership at the helm of both businesses, will result in increased shareholder value.

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.