Palm Warns of Big Loss During Last Quarter

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Palm has not yet announced the full results of its most recent financial quarter, but today it warned investors that its losses for the period were much higher than expected.


Based on preliminary financial data, the company says its revenue for the quarter — which ended Nov. 30 –was in the range of $345 million to $350 million. A couple of months ago, it predicted revenue would be between $370 million to $380 million.

Palm blamed the revenue shortfall on, "the delay in shipping a product that the company had previously expected to have certified within the quarter." It did not say which product, but it is almost certainly referring to Verizon Wireless’ release of Treo 755p, which has been held up for months.

At the time of the earlier prediction, Palm also said it expected to lose 1 to 3 cents per share on a non-GAAP basis. Today it updated that prediction to 8 to 10 cents per share, with the GAAP numbers jumping to 22 to 24 cents per share.

"We are disappointed that we did not get a key product certified for delivery in the quarter, but we are focused on realizing the long-term benefits and opportunities that inspired our transaction with Elevation Partners. We are pleased with recent improvements in our product delivery engine, the early success of Palm Centro, and the significant progress we’ve made on our strategic platform," said Ed Colligan, Palm president and CEO.

Full results for the Palm’s most recent financial quarter will be announced on Tuesday, December 18.

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