Palm warns of profit drop

After canceling its controversial Foleo product and continuing to struggle with a shift away from the personal digital assistant market, Palm Inc. warned on Wednesday that its upcoming earnings report could be weaker than expected.

For the quarter ending Aug. 31, Palm will lose US$0.01 per share or break even, the company said. Earlier, the company had said it expected a loss of US$0.01 or a gain of US$0.01 in the period. That compares with a gain of US$0.35 per share in the same quarter last year.

Palm also narrowed its revenue forecast to between US $359 million and US $361 million, instead of the previously expected US $355 million to US $365 million.Palm will release its quarterly earnings report on Oct. 1.

The company is facing challenges as it changes its business from one focused on PDAs to one that specializes in smart phones. Earlier this month, Palm announced it wouldn’t ship the Foleo, a companion product to its Treo smart phone, as planned. When the device was announced, analysts said it would be too expensive and wouldn’t offer valuable features. Palm said it decided to focus instead on its own software platform that is due out in 2008 or 2009.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Related Tech News

CDN in your inbox

CDN delivers a critical analysis of the competitive landscape detailing both the challenges and opportunities facing solution providers. CDN's email newsletter details the most important news and commentary from the channel.