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Palm: Third-quarter earnings 'disappointing'

Fourth-quarter revenue is now expected to be less than half the $305m Wall Street was expecting, Palm has warned

Palm has reported 'disappointing' earnings for its third quarter, and the company said on Thursday that fourth-quarter revenue would be under $150m, less than half the $305m Wall Street was expecting.

For the third quarter, Palm reported a non-Gaap net loss of $102.8m (£67.9m), or 61 cents per share, far beyond the 42 cent loss Wall Street had been expecting. Non-Gaap adjusted revenue was $366m — better than the $316.2m Wall Street had been looking for after Palm cut its outlook for the third quarter in February. Analysts had originally expected revenue of $424.7m in revenue, until Palm said in February that non-Gaap revenue would be between $300m and $320m for the quarter.

In a statement, Palm chairman Jon Rubinstein said: "Our recent underperformance has been very disappointing, but the potential for Palm remains strong. The work we're doing to improve sales is having an impact, we're making great progress on future products, and we’re looking forward to upcoming launches with new carrier partners."

For more on this story, see Palm earnings: 'Underperformance' is disappointing; So is the outlook on ZDNet.com.