The Sunnyvale, California-based company said it now expects revenues of between $390m and $395m, compared to the original $430m to $450m range it gave on September 21.
The company’s earnings also will miss estimates, Plam warned. Instead of 15 cent to 18 cent estimate previously provided, Palm said it would likely now earn between 10 cents and 11 cents.
Smartphone sell-through across our existing products is strong, reflecting solid business fundamentals in the face of significant competitive pressure, said Palm chief executive Ed Colligan, in a statement. However, our Q2 FY07 revenue will be constrained by a delay in certification of a key product.
That is, its Treo 750 for the US market, which will now begin shipping early in the third quarter of 2007. Colligan noted its Treo 750v launch in Europe was doing quite well, and we expect international revenue for [the current quarter] to be strong.
Palm shares fell more than 5% to $14.55 on the Nasdaq in after-hours trading, when the revised estimates were announced.
