“Palm Inc. said Tuesday that revenue for the quarter ended Feb. 27 will be sharply below Wall Street’s estimates as sales of the company’s older wireless handsets continue to slide,” Dan Gallagher reports for MarketWatch. “The company also said the launch of its highly anticipated Pre smart phone remains on track for the first half of the current calendar year.”
“For the third fiscal quarter, Palm said it expects revenue to come in between $85 million and $90 million. That’s down more than 70% from the same period last year. Wall Street analysts were expecting revenue of $157.7 million for the period, according to consensus estimates from FactSet Research,” Gallagher reports.
“Palm has had no significant new devices of late. Instead, the company is banking heavily on the new Pre smart phone introduced in January and expected to go on sale by mid-summer,” Gallagher reports. “The company is also facing a tighter cash supply. Palm said it burned through between $95 million and $100 million during the quarter, leaving it with a balance between $215 million and $220 million.”
Full article here.
MacDailyNews Take: Keep dangling that “Pre” takeover bait everywhere you can, Palm. If you don’t get snapped up by somebody and actually do make it to release, enjoy the injunction.
We don’t want to follow design fads. – Palm CEO Ed Colligan commenting on Apple’s iPhone, February 2007
