The group reported a loss of $14m in the three months to the end of February, excluding the effects of a special excess inventory and restructuring charges.

This compared to a profit of $9.3m in the same three months a year earlier.

But the group's revenues were ahead of expectations and it issued an upbeat statement:

"Tangible progress across virtually every aspect of our income statement and balance sheet gives us increased confidence in our ability to execute and to return to profitability," said the group's chairman and chief executive Eric Benhamou.

Investor applause

The company has been suffering from a sales slump, increased competition and a price war with its rival Handspring.