X

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.

Larry Dignan
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.