Palm expects third quarter earnings for fiscal year 2009 to dip below those of the second quarter. However, the upcoming release of the eagerly awaited Palm Pre smartphone - which Palm hopes will be its answer to the Apple iPhone and RIM BlackBerry Storm - may bring financial salvation in the end.
it is expecting revenues between $85 million and $90 million for
the third quarter of fiscal year 2009. Palm plans to detail complete financial
results for that quarter - which spans the economically souring period of Dec.
1, 2008 through Feb. 28, 2009 - on March 19.
Palm, however, is anticipating a more flush future, which
includes its new Pre smartphone.
In a statement, Palm attributed the financial declines of
the third quarter of 2009, which fell below the third quarter of 2008 and the
second quarter of 2009, to reduced demand for its older lines of smartphones,
the recession in the United States and the delayed shipment of the new Treo
Pro in the United States.
Though it's the Palm
that has tech lovers impatiently tapping their feet.
"The much-anticipated launch of
the Palm Pre remains on track for the first half of calendar year 2009, but as
expected we've got a difficult transition period to work through," Palm CEO Ed
Colligan said in a statement.
"Despite the challenging market
environment, the extraordinary response to the Palm Pre and the new Palm webOS
reaffirms our confidence in our long-term prospects and our ability to
reestablish Palm as the leading innovator in the growing smartphone market,"
Excitement surrounding the Palm Pre is
reminiscent of that around the Apple iPhone
, and appropriately so. It was
designed by Jon Rubinstein, who left Apple in 2006 and brought his killer
design aesthetic to Palm instead.
Palm also announced that, because it will periodically
update software features, free of charge, to customers of its Palm webOS
products, which includes the Palm Pre, it will recognize the revenues and cost
of revenues associated with those products on a straight-line basis over their
estimated 24-month economic life.