Ruh roh. A day after analysts downgraded the company's stock due to less-than-spectacular sales at Verizon, Palm has released its earnings report - and suffice to say, things aren't looking good. In an update to its third quarter financial guidance, Palm said that customer adoption of its devices is "taking longer than expected," and order volumes are being lowered and pushed back to "future periods." In a statement, Palm said the following:
"...Palm expects fiscal year 2010 revenues to be well below its previously forecasted range of $1.6 billion to $1.8 billion. The company will provide more detail on its financial results during Palm's third-quarter financial results conference call currently scheduled for Thursday, March 18."
The company remains committed to driving the Palm brand to consumers, with CEO Jon Rubinstein commenting that "our carrier partners remain committed, and we are working closely with them to increase awareness and drive sales of our differentiated Palm products." Though a rumor was making its way around the internet yesterday regarding Verizon Wireless dropping the Pre Plus and Pixi Plus from its lineup, it was quickly debunked. Company spokeswoman Brenda Raney told PreCentral that "Palm devices are an important part of our portfolio as more and more people enjoy both the Palm Pre Plus and the Palm Pixi Plus on the nation's most reliable network."
Frustrating news for Palm, and for shareholders, as the company's stock has dropped 30 percent this week. For those that own Palm devices, are you concerned about the future of the organization?