Things are not looking good for Palm as it continues to slide into dangerous territory amidst harsh economic times. The handset manufacturer announced imminent layoffs earlier this month and now it has released preliminary financial results for Q2 of the fiscal year 2009 which are abysmal at best. Palm’s revenue in Q2 looks as though it will come in just north of $190 million, an astounding 50+ percent drop off from Q1 in which the company took in $370 million in revenues. A statement from Ed Colligan, Palm’s president and CEO:

We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products. In order to ensure Palm’s long-term success during these uncertain times, we’re taking several steps to significantly reduce our cost structure. These measures will help us navigate this difficult period while launching our next-generation products as planned.

Palm has stated that it will be cutting its workforce and consolidating its offices in an effort to save an estimated $20 million per quarter but that will barely suffice at this point. Palm needs help, and fast, if it hopes to survive this tremendous downturn. Complete financials for Q2 FY09 will be announced on December 18.