Palm's revenue to be 'well below' forecasts

Consumers apparently aren't exactly flocking to buy Palm's smartphones, and that's going to hit the company where it hurts.

Palm Pre
The Palm Pre smartphone: Not living up to sales expectations? Corinne Schulze/CNET

Palm's smartphone recovery took a big hit Thursday as the company sharply cut its outlook for the third quarter and fiscal 2010 because "driving broad consumer adoption of Palm products is taking longer than we anticipated."

How ugly is it? Palm said its third-quarter revenue will be $285 million to $310 million under generally accepted accounting principles. Non-GAAP revenue will be $300 million to $320 million.

The problem: Wall Street is looking for revenue of $424.7 million.

For fiscal 2010, Palm also said its revenue will be "well below its previously forecasted range of $1.6 billion to $1.8 billion."

Read more of "Palm's wipeout: Revenue will be 'well below' forecasts as consumers balk at ZDNet's Between the Lines.

About the author

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.


    Join the discussion

    Conversation powered by Livefyre

    Show Comments Hide Comments
    Latest Galleries from CNET
    The 12 most distinctive phones of 2014 (pictures)
    Best mobile games of 2014
    Nissan gives new Murano bold style (pictures)
    Top great space moments in 2014 (pictures)
    This is it: The Audiophiliac's top in-ear headphones of 2014 (pictures)
    ZTE's wallet-friendly Grand X (pictures)