Palm, Inc. has warned investors that its most recent financial quarter won’t meet its previous hopes.
Back in June, Palm executives believed their company’s revenue for the June-August period would be between $380 million and $385 million, and earnings were expected to be in the range of 13 cents to 14 cents per share.
It turns out, though, that actual revenue didn’t quite live up to the projection. Based on preliminary financial data, Palm says its revenue for the quarter was in the range of $354 million to $356 million.
The company blamed this shortfall on “lower Treo volumes in carrier retail channels.” Palm sells most of its Treo smartphones to carriers, not directly to consumers.. If these companies aren’t stocking lots of Palm’s products, that has a big effect on the company’s revenue.
The news isn’t all bad, though. Palm still says its earnings for last quarter will be about 13 cents or 14 cents per share.
New Products Ahead
Along with this announcement, Palm’s president and CEO released a statement:
“We will soon address the market dynamics responsible for our first quarter revenue shortfall with two major product launches, one that improves our pricing position and both which extend our carrier relationships to global markets. Overall smartphone sell-through was up quarter over quarter, and our balance sheet is in excellent shape.
At least one of the new products Ed Colligan is referring to is the Windows Mobile Treo Palm has said it will launch in Europe next week.
The other is likely to be a new Palm OS Treo that has figured prominently in many recent rumors.
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