Palm has lowered its financial forecast for the current quarter because of delays in bringing its latest Treo smart phone to market.
Palm on Monday lowered its revenue forecast for its fiscal 2007 second quarter, which ends December 1, to a range of $390 million to $395 million from an estimate made on September 21 of $430 million to $450 million. It also pared its earnings forecast to a range of $0.10 to $0.11 per share from the earlier estimate of $0.15 to $0.18. Not counting special items, the estimate has been trimmed to $0.15 to $0.16 a share, from an earlier $0.20 to $0.23.
U.S. Launch of Treo 750 Lagging
Although its line of smart phones is selling well and the new Treo 750v introduced in Europe is popular, Palm hasn't been able to get the Treo 750 introduced in the U.S. as planned, according to the company.
"Our Q2 FY07 revenue will be constrained by a delay in certification of a key product. We now expect to start shipping the Treo 750 for the U.S. market early in Q3 FY07," Palm President and Chief Executive Officer Ed Colligan said in a prepared statement.
Palm waited until the market closed Monday to announce the news. After closing for the day at $15.37, about three hours later its stock had fallen by $0.64 in after-hours trading.
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