Archive notice: This article was originally published on December 19, 2007. Links and embedded videos are preserved as part of the historical record.
Due to the delayed market launch of a new device and unforeseen warranty repairs, Palm recorded a bottom-line loss of 9.6 million dollars after a profit of 12.7 million dollars in the same period of the previous year. Revenue fell by 11 percent to 349.6 million dollars (242.6 million euros), Palm announced on Tuesday evening after the close of trading in Sunnyvale (California).
For the current third fiscal quarter, the company expects an even higher loss of between 0.31 and 0.33 dollars per share. In the second quarter ended November 30, the loss was 0.09 dollars. Revenue in the third quarter is expected to amount to 310 to 320 million dollars. Palm had already warned at the beginning of December of worse-than-expected results. Among other things, the company is struggling with fierce competition from Canadian Blackberry manufacturer RIM and Apple’s iPhone.
Palm shares, which had already lost more than 50 percent of their value since mid-October, came under heavy pressure after hours. At times they lost around ten percent. In regular trading, they had still gained almost five percent to 5.93 dollars.
