Palm (PALM) Falls On Poor Q3 Results and Dismal Guidance
Palm Inc. (NASDAQ: PALM) said Thursday its quarterly loss widened, but the struggling smart phone maker did exceed its own lukewarm revenue forecast.
The mobile device maker reported a third-quarter loss of $102.8 million or 61 cents per share, below the analyst forecast of a loss of 42 cents per share. In the same quarter last year, Palm lost $98 million or 89 cents per share.
Revenue for the company in the quarter was $366 million, although due to adjustments the number may not compare with the revenue guidance issued last month of $285 million to $310 million and the Wal Street consensus of $316.19 million.
"Our recent underperformance has been very disappointing, but the potential for Palm remains strong," said Jon Rubinstein, Palm chairman and chief executive officer. "The work we're doing to improve sales is having an impact, we're making great progress on future products, and we're looking forward to upcoming launches with new carrier partners."
The company shipped 960,000 total smart phones in the third quarter, with a sell-through of 408,000 units.
On its conference call the company warned of continued issues, citing slow demand. The company sees fourth quarter sales of $150 million, versus the consensus of $305.77 million.
Palm has progressively been lagging behind competitors in the smart phone sector, as Apple Inc's (NASDAQ: AAPL) iPhone has a stranglehold on the popularity competition in the market, while Research in Motion Ltd.’s (NASDAQ: RIMM) Blackberry line is outselling Palm across the numerous wireless carriers.
Even top phone in the Palm lineup, the Palm Pre which is critically respected, has struggled to emerge from the shadow of competitors.
Shares of Palm are free falling in the aftermarket hours on Thursday, down 11.5 percent to $5.00.
The mobile device maker reported a third-quarter loss of $102.8 million or 61 cents per share, below the analyst forecast of a loss of 42 cents per share. In the same quarter last year, Palm lost $98 million or 89 cents per share.
Revenue for the company in the quarter was $366 million, although due to adjustments the number may not compare with the revenue guidance issued last month of $285 million to $310 million and the Wal Street consensus of $316.19 million.
"Our recent underperformance has been very disappointing, but the potential for Palm remains strong," said Jon Rubinstein, Palm chairman and chief executive officer. "The work we're doing to improve sales is having an impact, we're making great progress on future products, and we're looking forward to upcoming launches with new carrier partners."
The company shipped 960,000 total smart phones in the third quarter, with a sell-through of 408,000 units.
On its conference call the company warned of continued issues, citing slow demand. The company sees fourth quarter sales of $150 million, versus the consensus of $305.77 million.
Palm has progressively been lagging behind competitors in the smart phone sector, as Apple Inc's (NASDAQ: AAPL) iPhone has a stranglehold on the popularity competition in the market, while Research in Motion Ltd.’s (NASDAQ: RIMM) Blackberry line is outselling Palm across the numerous wireless carriers.
Even top phone in the Palm lineup, the Palm Pre which is critically respected, has struggled to emerge from the shadow of competitors.
Shares of Palm are free falling in the aftermarket hours on Thursday, down 11.5 percent to $5.00.
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