Palm cut sales forecast for the second quarter

Palm had disappointing news for their investors. The company has now cut their second-quarter forecast as they expect to take longer than expected to make its latest Treo device compatible with U.S. wireless networks.

The news was a disaster for the company’s stock as they fell by around 7.3 percent after the news was reported in the media.

The company said that their revenues for the period ending Dec. 1 would be around $390 million to $395 million. This would be disappointing compared to their forecasted figures of $450 million. Earnings would be around 10 cents to 11 cents a share. They had estimated it to be close to 18 cents per share.

Palm is facing intense competition from newer products launched by their rivals including the very successful Motorola Q device.

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