Palm Says Sales Are “Below Expectations”…. Shock… Not…

A press release from Palm appeared on the wires a couple of hours ago with this admission:

Palm, Inc. (NASDAQ:PALM) today indicated that it expects that revenues for the third quarter of fiscal year 2010 will be in the range of $285 million to $310 million on a GAAP basis and in the range of $300 million to $320 million on a non-GAAP basis.1 Revenues for the quarter and full year are being impacted by slower than expected consumer adoption of the company’s products that has resulted in lower than expected order volumes from carriers and the deferral of orders to future periods. Accordingly, 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.

For those of you looking for a translation, this means that Palm is not selling as many WebOS products (those would be the Palm Pre and Pixi) and thus won’t make as much money as it had hoped. I guess that proves the Pre and the Pixi aren’t the magic bullets to save the company. Just like I predicted they wouldn’t be when they were announced. The only question now is how long it will take Palm to wither and die?

In case you were wondering, Palm stock has nosedived 17% as I type this. I guess investors are heading for the exits.

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