Palm issues disappointing earnings

As expected, Palm reported dismal earnings for its third quarter. Last month, the company sharply cut its outlook for the third quarter and fiscal 2010 because "driving broad consumer adoption of Palm products is taking longer than we anticipated."

For the quarter, Palm reported a non-GAAP net loss of US$102.8 million, or 61 cents per share, far beyond the 42 cent loss Wall Street had been expecting. Non-GAAP adjusted revenue was US$366 million, which was actually better than the US$316.2 million that Wall Street had been looking for, after Palm waved the warning flags last month. Analysts had originally expected revenue of US$424.7 million in revenue until Palm said last month that non-GAAP revenue would be between US$300 million and US$320 million for the quarter. (Statement)

Despite the warnings and poor performance, the company narrowed the loss from the year-ago quarter non-GAAP loss of 86 cents per share.

Read more of "Palm earnings: 'Underperformance' is disappointing but potential remains" at ZDNet.com.