Palm plunges after lowering Q2 guidance
Palm, Inc. (Nasdaq: PALM) shares are plunging after the device maker reported after Thursday’s close that shipping delays, along with “unforeseen” warranty repairs, will cause a net loss in its latest quarter of between $0.08 and $0.10. The company cut its second-quarter revenue outlook to a range of $345 million to $350 million, from $370 million to $380 million. Analysts expect earnings of $0.04 per share on sales of $376.4 million.
"We are disappointed that we did not get a key product certified for delivery in the quarter, but we are focused on realizing the long-term benefits and opportunities that inspired our transaction with Elevation Partners,” CEO Ed Colligan said in a statement. “We are pleased with recent improvements in our product delivery engine, the early success of Palm Centro, and the significant progress we've made on our strategic platform.”
In morning trading, PALM shares are down 16.54%, or $1.09, at $5.50. Over the last 52 weeks, shares have ranged from $5.33 to $9.93.
