Palm, one of the largest mobile handset manufacturers today, remains positive despite its $43.4 million loss this quarter. (The Dow Jones revealed that Palm stock fell around 11 percent right after the earnings report was released.)

According to Palm, around half of that loss or roughly $20 million is due to compensation and restructuring costs. This is after the company decided to shift its business gears towards giving better accommodation to its Palm phone users.

Aside from this, Palm fronts serious competition from rival Research In Motion and the fast gaining popularity of Apple iPhone.

Despite losses, Palm is still positive that it can get back on track. Among the reasons for the company’s positive outlook is their Centro, the cheap handset that has set records in the market.

According to Ed Colligan, Palm President and Chief Executive, they continue to invest in Palm’s future and remain focused on building long-term value.

Palm continues to bank on selling Windows Mobile products, despite of a large switch of the general public into Apple-based hardware.