It hurts to be Palm, Inc. right now. After having its stocks rating downgraded earlier this month, the struggling mobile handset maker has cut its guidance numbers due to slower than expected sales and adoption of its mobile products. The news was delivered by Palm in a short an succinct manner:
Palm, Inc. (NASDAQ:PALM) today indicated that it expects that revenues for the third quarter of fiscal year 2010 will be in the range of $285 million to $310 million on a GAAP basis and in the range of $300 million to $320 million on a non-GAAP basis.1 Revenues for the quarter and full year are being impacted by slower than expected consumer adoption of the company’s products that has resulted in lower than expected order volumes from carriers and the deferral of orders to future periods. Accordingly, Palm expects fiscal year 2010 revenues to be well below its previously forecasted range of $1.6 billion to $1.8 billion. The company will provide more detail on its financial results during Palm’s third-quarter financial results conference call currently scheduled for Thursday, March 18.
Palm predicts Q3 revenue to be somewhere in the area of $300 million; Wall Street analysts were predicting $425 million. The company only said that 2010 revenues would be “well below” the forecasted $1.6 billion. Currently Palm stock is down 17%. Palm coincidentally halted production on their entire line of products, right?