Palm Lowers Forecasts, To Miss Expectations

Palm

The company said the quarter's earnings would be approximately $230 million, compared with the previously expected $290 million to $300 million.

In addition, executives said Palm will not meet its break-even profitability expectations for the quarter, which ends on Friday.

At Palm's March third-quarter conference call, Palm Chairman and CEO Eric Benhamou said the company had expected to turn a profit by spring. "Demand in spring did not materialize as we had previously expected, but rather market conditions deteriorated compared to both the year-ago quarter and recent months," said Benhamou.

Although Palm's financials will come in below projections, Benhamou said the company is still on track to migrate its devices to the more powerful ARM architecture.

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The first batch of devices based on the ARM processor are expected this summer, and Palm is expected to release the fifth version of its operating system at the same time.