Palm Warns of Q2 Loss, Nobody Surprised
By Simon Sage on Tuesday, December 2nd, 2008 at 9:28 AM PST In Financial/Corporate News, Palm
We had heard last week that Palm (NSDQ: PALM) was planning some layoffs for the holidays, and although we don’t have the number of pink slips being handed out, recent warning of second quarter losses indicate that they hope to shave off $20 million in expenses in order to stay afloat. Palm’s looking at around $190 million for its Q2 earnings, which is down 46% from the same time last year, where they made $367 million. Their latest handset, the Treo Pro, though nothing to scoff at, is clearly not enough to pull Palm out of their downward spiral, and certainly not enough to get them up to the $330.8 million earnings point that analysts were expecting. Of course, the overall economic sitation isn’t helping much, either.
“We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products,” Ed Colligan, Palm’s chief executive, said in a statement.
Tough break Palm – with the likes of iPhone and BlackBerry rocking the smartphone market, you’ll have an upstream battle to fight here.
[via Yahoo!]
How can you put a story out about Palm and its financial future being tied to its phones that have yet been unable to pull them out of their issues and not mention the importance of their dependence on the performance of the Palm Pre???