Treo 750 Delay Causes Financial Shortfall for Palm

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Palm, Inc. has just revealed that it isn’t taking in as much money this quarter as it had previously expected, a shortfall the company is blaming on a delay in the release of the Treo 750 in the United States.

This smartphone debuted in Europe last month, and Palm hoped it would be available on the other side of the Atlantic before the end of November, but this hasn’t happened yet.

Palm didn’t say which company was holding up the release, as no U.S. carrier has officially said it will be offering the Treo 750. However, leaks and rumors indicate that Cingular Wireless will be the first non-European carrier to offer this model, so it seems likely this is the company responsible.

Carriers always put new phones through a gamut of tests before releasing them on their networks, hoping to prevent problems that will affect many users. This process usually takes months, but it appears it’s taking longer than expected in the Treo 750’s case.

Palm now says this smartphone will be available in its next financial quarter, which means December or January.

Financial Results

Palm currently expects revenue for this quarter, which ends this month, to be in the range of $390 million to $395 million. This compares with earlier guidance of $430 million to $450 million provided September 21, when Palm announced its previous quarterly results.

Nevertheless, the company will still be profitable. Earnings per diluted share are expected to be 10 or 11 cents on a GAAP basis. This compares with earlier guidance between 15 and 18 cents.

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