Palm slapped by predicted loss

Reflecting a sharp drop in demand, handheld maker Palm on Tuesday reported a loss of $27 million for its fourth quarter, or 5 cents per share, on revenue of $233 million. The sales figure is in line with the company's warning in May but far short of the $290 million to $300 million the company had originally told financial analysts to expect. The figure is also up 41 percent from the $165 million in revenue the company took in during the prior year. Excluding certain charges and benefits, Palm lost $18 million, or 3 cents per share, for the fourth quarter of fiscal 2002. This compares to a pro forma net loss of $89 million, or 16 cents per share, for the fourth quarter of fiscal 2001. Palm said it shipped 900,000 handhelds in the quarter and 4.4 million for the full fiscal year, which ended May 31. --Ian Fried, Special to ZDNet News