Tuesday, November 28, 2006
Palm Inc. cut second-quarter profit and revenue forecasts, blaming a delay in shipping its new Treo 750 smartphone in the United States.
Palm now expects to start shipping the Treo 750 in the United States in the fiscal third quarter instead of the current quarter, when it expected the device would help boost sales.
The Treo 750 runs on Microsoft operating system, while another new model, the Treo 680, uses Palm's operating system.
Palm now expects to report net income for its fiscal second quarter of 10 cents to 11 cents per share - down from an earlier forecast of 15 cents to 18 cents per share.
Palm said it expects to report revenue of $390 million to $395 million, down from its earlier forecast of $430 million to $450 million and below Wall Street's view of $442.3 million.
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