Palm cautions on earnings, says new models will help

Sep 07 2006 - 03:45 PM ET | Backpage, Palm

Palm has cautioned investors that it will likely come in short on revenue targets for the current quarter. The company originally forecasted revenue between $380 and $385 million, but has issued a new projection of $354 to $356 million. Shares of Palm [PALM] were trading down close to 8% at the time of this writing. Palm's inability to ship new products has hurt its revenue, but that will change soon according to CEO Ed Colligan:

"We will soon address the market dynamics responsible for our first-quarter revenue shortfall with two major product launches, one that improves our pricing position and both which extend our carrier relationships to global markets," said Ed Colligan, Palm's president and chief executive officer.

Palm is expected to make at least one of the announcements at CTIA IT 2006 on September 12th. MobileTracker will be at the show and plans to provide in-depth coverage.