Palm in a BlackBerry-Apple Jam
The firm warned earlier this month that it would miss its second quarter forecast after failing to get a new phone certified for sale by the end of November. (See Palm Lays Off.)
Palm reported a second quarter loss of $9.63 million, or 9 cents a share, compared with a profit of $12.8 million, or 12 cents a share, a year earlier. Revenue dropped to $349.6 million from $392.9 million for the same quarter the previous year.
For the third quarter, Palm is predicting revenues in the range of $310 million to $320 million. Analysts were expecting $358 million for the third quarter.
Palm shares were down 67 cents (11.3%) at $5.26 in early after-hours trading.
During the last couple of quarters, Palm has faced more competition in the consumer market than ever before. Apple announced its millionth iPhone sale in September and was lauded as AT&T Inc. (NYSE: T)'s best selling device. RIM is also ramping up shipments of its Pearl and Curve smartphones. (See Apple Sells a Million iPhones and BlackBerry Bumper Crop in '08.) — Dan Jones, Site Editor, Unstrung