palmOne, Inc. is reporting revenue of US$285.3 million for the third quarter of fiscal year 2005, ended 25 February, up approximately 18 percent from the US$242.5 million reported during the comparable quarter a year ago.

Net income was US$4.4 million, or US$0.09 per diluted share, reflecting certain non-recurring employee-separation costs. This compares to a loss in the year-ago period of US$9.3 million, or US$0.20 per share.

Net income in the third quarter of fiscal year 2005 totaled US$10.6 million, or US$0.21 per diluted share, excluding the effects of amortization of intangible assets and deferred stock-based compensation and employee-separation costs.

palmOne notes that this is the seventh consecutive quarter of year-over-year growth. During the quarter the company expanded smartphone sales to include the Treo 650 across the Cingular Wireless network in the United States, building upon sales of Treo 600 smartphones and taking advantage of Cingular’s high-speed Enhanced Data for Global Evolution, or EDGE.

Last quarter also saw an expanded the relationship with Orange in the U.K., France and Switzerland to include the Treo 650 smartphone, building upon Orange’s previous sales of Treo 600 smartphones. The company also signed an agreement with Telecom Italia Mobile, or TIM, to distribute the Treo 650 smartphone in Italy.

During this period 1.5 million units of the Tungsten E were sold. The Tungsten E represented 20 percent of all US handheld sales since its introduction, 18 months ago, according to The NPD Group. Also during the same period palmOne shipped approximately 938,000 Zire, Tungsten and Treo family devices.