Updated from 5:24 p.m. EDT

Handheld computer maker

Palm

(PALM)

said Monday that its operating earnings and revenue more than doubled in the latest quarter, topping Wall Street's estimates amid heightened competition in the industry.

Palm reported fiscal first quarter operating earnings of $23.9 million, or 4 cents a share, compared with $10 million, or 2 cents a share, a year earlier. The consensus among Wall Street analysts was 2 cents a share, according to

First Call/Thomson Financial

.

Net income, including costs related to the recent purchase of

AnyDay.com

and two other acquisitions, was $17.3 million, or 3 cents a share, compared with $9.7 million, or 2 cents a share, a year ago, according to the company.

The results, announced after the market closed Monday, showed that revenue in the first quarter of fiscal 2001 more than doubled, reaching $401 million and surpassing analysts' estimates by at least $10 million.

Santa Clara, Calif.-based Palm, meanwhile, said it shipped about 1.5 million devices in the latest quarter, boosting cumulative shipments to more than 8.7 million, as demand for handheld devices remains strong.

"This is our third consecutive quarter of 100% plus year-over-year revenue growth, and we achieved it in an environment of increased competition and continued component constraints," said Carl Yankowski, Palm's chief executive, in a statement.

Judy Bruner, chief financial officer of Palm, said in a conference call that the company would not be able to secure all the components it needs to meet demand until the third or fourth quarter of fiscal 2001. But she argued that her company had done at least as well as its competitors in addressing the supply problem.

In the call with analysts and reporters, Bruner and Yankowski also highlighted the company's fall lineup of products, especially the m100, a $149 handheld computer featuring an electronic note-pad.

With new products, Palm said it has penetrated more deeply than expected into the student population. And Bruner said that unlike some rivals, which are citing a slowdown in European demand, Palm continues to find a strong appetite across the Atlantic.

Palm shares rose 44 cents to close at $52.25 on Monday after the company said it was teaming up with

Motorola

(MOT)

to build a line of "smart phones." The first phones would be available in early 2002, allowing users to access e-mail, electronic address books and other features.

Palm, embracing the widely held view that handheld devices will one day replace desktop computers as the principal means for delivering the Internet, introduced its Palm.Net wireless service in May 1999.